The Trump administration found “no viable path” forward to complete California’s high-speed rail project following a nearly four-month investigation that jeopardizes $4 billion in federal funding.
Those funds could be pulled within the next 37 days following the high-speed rail authority’s response.
“CHSRA relied on the false hope of an unending spigot of Federal taxpayer dollars,” the Federal Railroad Administration’s acting administrator Drew Feeley wrote.
The Trump administration is not currently seeking repayment of past federal funds, according to the review.
He and other transit leaders also tied the project’s future to the privately owned Brightline West high-speed rail project, which would connect from Las Vegas to Southern California.
After an almost four-month investigation that puts $4 billion in federal funding at risk, the Trump administration concluded that there was “no viable path” forward to finish California’s high-speed rail project.
The Department of Transportation cited budget shortages, missed deadlines, and an inaccurate projected ridership for a fast rail line that would connect San Francisco and Los Angeles in a 310-page compliance review that was made public on Wednesday. Federal construction grants in the Central Valley are the focus of the review. After the high-speed rail authority responds, those funds could be removed in the following 37 days.
“CHSRA was based on the erroneous belief that there would be an endless supply of Federal taxpayer funds,” wrote Drew Feeley, acting administrator of the Federal Railroad Administration. There is no realistic plan to deliver even that partial segment on time, so CHSRA has essentially defrauded the taxpayer of its $4 billion investment. “”.
The findings, deemed “misguided” and an inaccurate representation of the project, were disputed by the high-speed rail authority.
According to a spokesperson, “The Authority will fully address and correct the record in our formal response.”. Our goal is still to connect the state’s main population centers with the country’s first real high-speed rail system. “”.
In a previous vote on new contracts to proceed with Central Valley construction and design, authority leaders raised concerns about the possible loss of federal funding. Along with a state-appointed advisory committee, CEO Ian Choudri has stated that public-private partnerships will be crucial to the project’s future. Additionally, the project will continue to receive funding for the next 20 years at a rate of at least $1 billion annually under the most recent state budget proposal.
For the project, about $14 billion has been spent. Eighty-two percent of that funding has come from the state, with the remaining 18 percent coming from the federal government. The review states that the Trump administration is not presently pursuing repayment of previous federal funds.
According to Lou Thompson, who served on the authority’s peer review committee for 15 years before retiring last year, the project has long had budget and schedule problems, which he and others have openly addressed throughout several administrations.
He declared, “It’s evident that there are significant issues with the project—that has been clear.”.
Since its beginning, the project has encountered numerous difficulties. There are still tens of billions of dollars to be found, and the budget is about $100 billion more than the authority’s initial $33 billion estimate from 2008. Although the train was first planned to be completed in 2020, only a 171-mile section of the Central Valley has seen construction. Furthermore, despite receiving environmental clearance for construction last year, only a portion of the line between San Francisco and Los Angeles has been finished.
The highly criticized choice to run the rail through the east side of the San Joaquin Valley rather than on Interstate 5, which would have been a more direct and cost-effective route, is the root cause of many of the issues. The previous year, Gov. Gavin Newsom emphasized the need to move forward and stated that past decisions could not be reversed. Additionally, he and other transit officials linked the project’s future to the privately held Brightline West high-speed rail project, which would link Southern California and Las Vegas.
Days after Republican lawmakers urged President Trump to look into California’s project, Department of Transportation Secretary Sean Duffy started the review in February.
“We cannot simply declare that we will provide funding without holding states responsible for how they use it in accordance with their agreements with the federal government,” Duffy stated. “It’s okay if California wishes to keep investing, but the Trump administration will consider whether this project merits ongoing funding. “.”.
Trump stated last month that the project would not be funded by the federal government.
Duffy’s announcement was met with protests from transit advocates, and Rep. House Committee on Transportation and Infrastructure member Laura Friedman (D-Glendale) expressed concern that a potential cutoff of federal funding for this massive project might signal a similar move for other transit projects that are awaiting Trump administration commitments.
State Sen. Vice-chair of the Senate Transportation Committee Tony Strickland (R-Huntington Beach) praised the Trump administration’s conclusions and referred to the project as a failure.
“We should end this and acknowledge that billions of dollars have already been squandered,” Strickland stated. He stated that the jobs created by high-speed rail could be transferred to other projects and cited other transit initiatives, such as Metro’s plans for the Olympics, as “more worthy for California citizens” in terms of investment.
More than 15,000 jobs have been created in the Central Valley, and the project has been credited with helping to revitalize some business districts there. According to a recent poll conducted by Politico and UC Berkeley, 67 percent of a sample of more than 1,000 registered voters supported the project.
Andy Kunz, the president and CEO of the U.S. A. High-Speed Rail Association. As California’s transportation system continues to stutter to a standstill, support for the California High Speed Rail project is increasing. “”.
High Speed Rail Alliance executive director Rick Harnish described the review as “dangerous” and claimed it would only lead to more obstacles for the project, which he considers vital for the state.
“To L, this is about more than just the Bay Area. A. A basin. It would be the impetus for creating genuinely economically viable communities and families, providing them with greater economic opportunities. This concerns transportation for the entire state. It would simply be massive. “”.
The project has also largely received support from Democratic lawmakers.
“This announcement represents a rejection of what lies ahead. In order to satisfy the demands of working families while respecting labor, consumers, and the environment, California has taken the lead in implementing the high-speed rail vision. A. Rep. In a statement, Nancy Pelosi (D-San Francisco) stated.
“It is regrettable that the Secretary has misrepresented the facts and does not understand how California High-Speed Rail lowers housing costs by reducing the distance commute from home to work, boosts commerce, and creates good-paying jobs for Californians.”. “”.
