DMN has the story, No penalty for state over 121 bidding.
The Federal Highway Administration responded by sending Texas officials a series of letters saying the late bid could violate the federal bidding rules and that the state could lose more than $200 million in federal funds if the contract was awarded to NTTA.
Yesterday, in an interview with The Dallas Morning News, FHWA spokesman Ian Grossman said the government had made no decision on whether to seek the return of the federal funds. He said officials were considering all options, including what has been seen as the most draconian possibility, the demand that Texas send a check back to Washington for the full amount of federal funds that had previously been spent on State Hwy. 121.
Today, Sen. Hutchison said Secretary Peters has expressly promised that the federal government will not penalize Texas in any way as a result of NTTA’s.
Regional Transportation Council chairman Oscar Trevino, who is also mayor of North Richland Hills, said he remains convinced NTTA will seal its deal with TxDOT and the RTC to build the road by its Aug. 27 deadline. The specter of lost highway funds, he said, had always appeared to him to be simply a bargaining chip used by state transportation officials who had favored Cintra’s bid.
It looks like KBH may be taking sides against “state transportation officials” in Texas. This could all be wrapped up in 2010 Texas GOP gubernatorial politics. If KBH decides to run for governor it will be interesting on the GOP side no doubt. Where transportation whether Perry runs or not. What would KBH running for governor mean for Perry and Dewhurst, who announces first, etc.. Not to mention the clout Rick Noriega will have being the Senior Senator from Texas once KBH steps down to run for governor.