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SACRAMENTO, Calif. (AP) — California sued Tuesday to block the Trump administration from cancelling nearly billion for the state's high-speed rail project, escalating the state's feud with the federal government.The Federal Railroad Administration announced last week it would not give California the money awarded by Congress nearly a decade ago, arguing that the state has not made enough progress on the project.The state must complete construction on a segment of track in the Central Valley agricultural heartland by 2022 to keep the money, and the administration has argued the state cannot meet that deadline. That line of track would be the first built on what the state hopes will eventually become a 520-mile (837-kilometer) line between San Francisco and Los Angeles.But Democratic Gov. Gavin Newsom says the move is retribution for California's criticism of President Donald Trump's immigration policies."The decision was precipitated by President Trump's overt hostility to California, its challenge to his border wall initiatives, and what he called the "green disaster" high-speed rail project," the state said in the lawsuit.California was not expected to tap the 9 million the Trump administration has revoked until 2021. If the lawsuit is not resolved before then, the election could put Democrats in the White House and Congress who may be friendlier to the project.The lawsuit faulted the Trump administration for halting cooperation with the state on granting environmental clearances for the project. It said terminating the funding would "wreak significant economic damage on the Central Valley and the state."Newsom told reporters the administration is "after us in every way, shape or form." But he expressed confidence the state will win in court."Principles and values tend to win out over short-term tweets," Newsom said.The lawsuit highlighted a series of tweets Trump sent about the project, including one that said California's rail project would be far more expensive than Trump's proposed border wall.That tweet came a day after California led 15 states in suing over Trump's plans to fund the border wall, and hours before the administration first threatened to revoke the rail funding.The Federal Railroad Administration did not immediately respond to an email message seeking comment about California's lawsuit.California has worked for more than a decade on the project to bring high-speed rail service between Los Angeles and San Francisco, but the project has been plagued by delays and cost overruns. It's now projected to cost around billion and be finished by 2033.The state has already spent .5 billion in federal funding, and the Trump administration is exploring whether it can try to get that money back.The lawsuit also asks the court to block the administration from awarding the money to any other project.The lawsuit was filed in the Northern District of California.The dispute over the funding was partly driven by Newsom's remarks in February that the project faced challenges and needed to shift focus. Rail officials had been planning to connect the line under construction in the Central Valley to Silicon Valley, but Newsom has proposed extending the line further north and south into the valley before heading west.The California High-Speed Rail Authority presented a plan in early May that showed it would cost .3 billion to get trains up and running between Bakersfield and Merced by 2028.The board overseeing the project voted Tuesday to further study whether it makes sense financially and otherwise to run early train service on that line. Tom Richards, the vice chairman, noted the board has not yet formally approved the new approach."The board has not been asked for, nor has the board given, any interim service direction to (the project's) management," he said. 3851

SACRAMENTO -- State water regulators met in Sacramento Tuesday to consider making water wasting rules permanent state law, according to The Mercury News.The State Water Resources Control Board held the public hearing, but it’s unclear whether a final vote would come Tuesday, or at a later date.The talks come amid one of the driest winters in modern California history. The rules being discussed were originally enacted during the last drought.RELATED: San Diego County moves a step up in drought severityIf the rules were made into state law, offenders could be fined up to 0 per violation.The rules were originally put into place between 2014 and 2017 under orders from Governor Jerry Brown but expired November 25.Environmentalists supported the rules and asked that they be made even stricter. The groups supported a rule that would have prohibited restaurants from serving water to customers who didn’t ask for it.Cities have also thrown their support behind the rules, but say they object to the way they’re legally framed.RELATED: Plan to replace dead, drought-stricken trees in Balboa Park speeds upThe board has the authority to pass water rules in power granted to them by voters in 1928. According to The Mercury News, cities and farmers have feared that the authority could be used to limit water rights.The rules that could be made into state law are: 1386

SACRAMENTO, Calif. (AP) — A Northern California Republican is set to join her husband in the state Legislature, with her Democratic special election opponent conceding but promising a rematch next year.Megan Dahle had 58% of Tuesday's special election vote to 42% for Democrat Elizabeth Betancourt.Dahle is set to succeed her husband, Brian, a Republican who represented Assembly District 1 until he won a special state Senate election in June.Close the Gap California says she'll give California's 120-member Legislature a new state record of 38 women.Dahle and her husband have a wheat farm and a related seed grain transport business in Bieber, 250 miles northeast of Sacramento. The sprawling Assembly district covers nine counties from suburban Sacramento to the state's northeastern corner and covering all or parts of nine counties. 847

SACRAMENTO, Calif. (AP) — California's attorney general is accusing a car dealership of false advertising and lying on loan documents to boost the company's profits at the expense of its mostly low-income customers.Attorney General Xavier Becerra sued Paul Blanco's Good Car Company on Monday.Becerra said the company's prolific TV and radio ads would boast about 2% interest rates and approving people for loans over the phone. But Becerra said those were lies designed to lure customers to the dealership. Once people came, Becerra said the company would then lie about their incomes and the value of the vehicles to convince lenders to approve the loans.Representatives from the dealership did not respond to a request for comment. Paul Blanco's Good Car Company operates seven auto dealerships in California and two in Nevada. 838

SACRAMENTO, Calif. (AP) — California lawmakers are negotiating a pair of proposed tax increases as the deadline approaches for Democratic Gov. Gavin Newsom to sign a 4.8 billion operating budget.Lawmakers approved the budget bill last week, but lawmakers still must pass more than a dozen "trailer bills" that detail how the money must be spent.Monday, the state Senate approved a plan to raise taxes on some business income and give that money to people who earn less than ,000 a year in their annual tax refunds. The Assembly, meanwhile, approved a fee of up to 80 cents per month on phone bills — including cell phones — to pay for an upgrade to California's aging 911 system following the most devastating wildfire season in state history.The businesses taxes are a tough vote in the Assembly , where Democrats in power have concerns about voting to align the state's tax code with a portion of the 2017 federal tax law signed by Republican President Donald Trump. The 911 fee is a tough vote in the Senate, where lawmakers are wary of voting again on a cell phone fee after a similar proposal fell one vote shy of passing last year.Lawmakers in both chambers breezed through a series of trailer bills on Monday that did things like temporarily suspend taxes on diapers and tampons and extend the state's paid family leave program by two weeks. Lawmakers passed each one with little debate and with bipartisan agreement on several points.But the Legislature is poised for a pair of critical votes on Thursday on the 911 fee and business taxes, with leaders in both chambers trying to pressure the other one to vote."It is really kind of part of our strategy to make sure one house takes a vote that may feel difficult by the other house, and vice versa," said Sen. Holly Mitchell, a Los Angeles Democrat and chairwoman of the Senate Budget Committee. "I think those are appropriate dots to connect."The business tax changes are part of a plan to selectively adopt some of the federal tax changes Trump signed into law in 2017. Some items would lower taxes and others would increase them. Overall, the state would get an additional .6 billion in revenue during the fiscal year that begins July 1.Newsom wants to use most of that money to triple the state's earned income tax credit program, which boosts the size of annual tax refunds for low-income people. The plan would make about 1 million more people eligible for the credit. Plus, it would give ,000 to people who make less than ,000 a year and have at least one child under 6.But the plan would still not include immigrants who pay taxes but do not have Social Security numbers. Newsom would not include that in the budget because he said it was too expensive, but pledged to work toward it in future years.In an effort to win votes, lawmakers have stopped referring to the bill as "conforming" to the federal tax code, but instead call it "loophole closure." Assemblyman Adam Gray, a moderate Democrat from Merced, supports the bill. He said he has never seen "so much consternation" about a tax bill, noting lawmakers often conform to federal tax changes without controversy.The 911 fee is an effort to upgrade the state's system so it can handle text messages, photos and videos. But the fund that pays for the system is based on a fee for each phone call. The fund has been steadily declining as more people opt to send text messages.Assemblyman Jay Obernolte, R-Big Bear Lake, argued that the state should use some of its surplus to pay for the changes rather than raise fees on consumers. But Assemblywoman Christy Smith, D-Santa Clarita, argued that the state's 911 system is essential and requires funding beyond a short-term surplus."Yes, we have a surplus. But we don't always have a surplus in California," she said. "We will always have emergencies."___Associated Press writer Andrew Oxford contributed. 3896