Taxpayer cost for California's High-Speed Rail project revealed
The Trump administration is considering pulling federal funding from California 's High-Speed Rail project after the US Department of Transportation revealed no track has been laid despite nearly $7 billion in taxpayer funds spent over 15 years. The ambitious project, initially approved by voters in 2008 with a $10 billion budget, aimed to connect major cities in California, however, costs have escalated dramatically, with the total projected cost now ranging from $89 billion to $128 billion.
The Federal Railroad Administration has since issued a scathing 315-page report which cites key issues with the troubled project including missed deadlines, budget overruns and unreliable ridership projections. The White House has now initiated a review to determine whether to rescind an additional $4 billion in federal grants allocated for the project's completion. The embattled rail line faces further roadblocks with a $7 billion funding gap for the Merced-to-Bakersfield segment, even before the Trump administration considers pulling the $4 billion in federal funds.
The entire San Francisco-to-Los Angeles project was initially supposed to be completed by 2020 for $33 billion, Reuters reported - but the project is far from completion of any phase. The Transportation Secretary emphasized that if the California High-Speed Rail Authority (CHSRA) cannot demonstrate progress, the federal government may redirect funds to other infrastructure projects.
'CHSRA is on notice - If they can't deliver on their end of the deal, it could soon be time for these funds to flow to other projects that can achieve President Trump's vision of building great, big, beautiful things again,' he said. 'Our country deserves high-speed rail that makes us proud - not boondoggle trains to nowhere.' In response, CHSRA defended the project, asserting that over 15,000 jobs have been created and 119 miles are under active construction.
'There is active civil construction along 119 miles in the Central Valley, resulting in over 15,000 construction jobs, and design and pre-construction activities are underway on the extensions to Merced and Bakersfield totaling 171 miles,' as per a CHSRA statement. The CHSRA added that most of its funding comes not from federal origins but rather from the state of California. 'We remain firmly committed to completing the nation's first true high-speed rail system connecting the major population centers in the state. While continued federal partnership is important to the project, the majority of our funding has been provided by the state. To that end, the Governor's budget proposal, which is currently before the Legislature, extends at least $1 billion per year in funding for the next 20 years, providing the necessary resources to complete the project's initial operating segment,' a CHSRA spokesperson told the DailyMail.com.
'The Authority will fully address and correct the record in our formal response to the FRA's notice,' the authority added. The federal government has given California until mid-July to respond to the review - if the CHSRA fails to provide satisfactory evidence of progress, the $4 billion in federal grants may be rescinded. In 2021, then-President Joe Biden restored a $929 million grant for the high-speed rail, funds which Trump had revoked in 2019 after he called the project a 'disaster,' Reuters reported. Now, all eyes are on the Golden State's response and whether the innovative rail project can overcome its financial and logistical challenges. The California High-Speed Rail System is a planned two-phase 800-mile system with speeds of up to 220 miles per hour that aims to connect San Francisco to Los Angeles/Anaheim and in the second phase extend north to Sacramento and south to San Diego .
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