Trump Fight Over California Train Stalls Virgin Muni-Bond Plans
- Treasurer wants federal sign-off before approving bond sale
- Virgin counting on tax-free debt to finance Las Vegas train
Photographer: Scott McIntyre/Bloomberg
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Virgin Trains USA’s plan to finance the contruction of a high-speed railroad to Las Vegas with billions of dollars of tax-exempt bonds sold through a California agency is being stalled by doubts about whether President Donald Trump’s administration will approve the project.
California Treasurer Fiona Ma said in an interview that she won’t put the proposed bond sale on the agenda for the state debt committee’s next meeting in April unless she sees a letter affirming the federal government will allow it. Virgin Trains, which is backed by Fortress Investment Group’s private equity funds, had argued that investors would buy the bonds anyway with the federal environmental approval pending.