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[[File:Elaine Chao large.jpg|thumb|left|Secretary of Transportation [[Elaine Chao]] deferred expected federal funding for the electrification project just before construction was about to commence.]]
By February 2017, the electrification project had secured $1.3 billion in state, local, and regional funding, with the remaining funding gap to be closed by a $647 million grant from the [[Federal Transit Administration]]’s (FTA) Core Capacity program.<ref>{{citeweb|url=http://www.caltrain.com/about/MediaRelations/news/Caltrain_Statement__Electrification_Must_Move_Forward.html|title=Caltrain Statement: Electrification Must Move Forward|publisher=Caltrain|date=February 8, 2017|accessdate=March 29, 2017}}</ref> The grant had undergone a two-year review process under the [[Obama Administration]] and received a "medium-high" rating from the FTA, and was waiting the new [[Trump Administration]]-appointed Secretary of Transportation [[Elaine Chao]]'s signature after a thirty-day review period.<ref name="contractextension">{{citeweb|url=http://www.mercurynews.com/2017/02/28/caltrain-agreement-with-contractors-to-extend-deadline-keeps-electrification-project-alive/|title=Caltrain: Agreement with contractors to extend deadline keeps electrification project alive|publisher=''[[San Jose Mercury News]]''|author=Green, Jason|date=February 28, 2017|accessdate=March 29, 2017}}</ref> However, during the review period, the fourteen [[Republican Party (United States)|Republican party]] [[United States House of Representatives|U.S. House]] representatives from California sent a letter to Secretary Chao, urging her to deny funding due to the project's ties with high-speed rail, which they opposed. They called the high-speed rail project a "boondoggle" and the Caltrain grant as a "waste of taxpayer dollars".<ref name="grant">{{citeweb|url=https://www.nytimes.com/2017/03/06/us/trump-and-republicans-block-caltrain-grant.html|title=In Silicon Valley, Caltrain Upgrade Is Imperiled as Trump Withholds Funds|publisher=''[[The New York Times]]''|date=March 6, 2017|accessdate=March 29, 2017}}</ref>
Secretary Chao heeded their arguments, and deferred the grant in a letter to Caltrain which stated that the FTA needed "additional time to complete review of this significant commitment of Federal resources". Caltrain had expected Secretary Chao to approve the grant by March 1, which is normally a ''[[pro forma]]'' step done after the thirty-day comment period for a highly-rated project, and had already awarded construction contracts.<ref name="contractextension"/><ref name="SV">{{citeweb|url=http://www.eastbaytimes.com/2017/03/24/trump-chao-get-an-earful-on-caltrain-funds/|title=Trump, Chao get an earful on Caltrain funds from Silicon Valley leaders|publisher=''East Bay Times''|author=Richards, Gary|date=March 24, 2017|accessdate=March 29, 2017}}</ref> [[Balfour Beatty Construction]] and [[Stadler Rail]] had already begun preparations to upgrade the existing tracks and build electrical trainsets, respectively. In response, Caltrain negotiated an emergency four-month extension at the cost of $20 million.<ref name="contractextension"/>
In response to the grant deferral, various local officials traveled to [[Washington D.C.]] in order to lobby federal officials to release the money. San Jose Mayor [[Sam Liccardo]] met with Department of Transportation officials, urging them to upgrade a system that "was built under the presidency of [[Abraham Lincoln]]". Additionally, more than 120 Silicon Valley business leaders sent a letter to Secretary Chao, asking her to explain "the last-minute attempt to derail two decades of work".<ref name="SV"/> On March 21, 2017, California Governor [[Jerry Brown]] met with Secretary Chao and House Majority Leader [[Kevin McCarthy]], author of House Republican letter to Chao, urging them to reconsider the funding deferral, saying afterward that he was "cautiously optimistic" that the money would be released.<ref>{{citeweb|url=http://www.sacbee.com/news/politics-government/capitol-alert/article139943463.html|title=Jerry Brown meets with Republicans, ‘cautiously optimistic’ about Caltrain approval|publisher=''[[Sacramento Bee]]''|date=March 21, 2017|accessdate=March 29, 2017}}</ref>
==Proposal==
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