U.S. Renews Threat to Strip L.A. of Transportation Funds
The federal government Monday renewed its threat to strip Los Angeles of all transportation-related funding unless the city general fund returns $31 million in disputed funds to Los Angeles International Airport.
Repeating its declaration that the September transfer from LAX to the city’s general fund was illegal, the Federal Aviation Administration said it is launching an investigation into the transfer and that the money--for both aviation and non-airport transit grants--could be in jeopardy as soon as mid-January.
FAA officials said they would adhere to a request to meet with the City Council, or to arbitrate the dispute informally. But they said they were “not persuaded” by City Atty. James K. Hahn’s defense of the transfer.
The council voted last month to hold the money in an escrow account until the controversy is resolved.
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