Latest news with #FederalRailroadAdministration
Newsweek
6 days ago
- Business
- Newsweek
California High-Speed Rail Hits Back at Funding Cuts: 'Outright Misleading'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The California High-Speed Rail Authority has hit back at the Department of Transportation after a new report threatened to withdraw federal funding for the state's rail project. The authority stated that the Federal Railroad Administration's description of the largest high-speed rail project in the country was "inaccurate" and even "outright misleading" at times. Newsweek reached out to the Federal Railroad Administration via email for comment. Why It Matters While the California high-speed rail project continues to make progress throughout the Central Valley, the project is increasingly drawing the ire of the federal government. President Donald Trump has been a longtime critic of the project, branding it a "waste" and a "green disaster." Transportation Secretary Sean Duffy has echoed similar skepticism over the cost and timeline of the project, both of which have ballooned beyond original estimates. What To Know This skepticism culminated in a compliance review into the project's use of two federal grants worth around $4 billion. The report, published on June 5, said that the project was still $7 billion short, and that there was "no credible strategy in place to secure additional funds." "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," Duffy said in a statement. However, the project's management fired back in their initial response, stating that the project was making significant progress in construction. "I must also take this opportunity to dispute, in the strongest possible terms, the misleading claim that the Authority has made 'minimal progress to advance construction', Authority CEO Ian Choudri said in a letter on Wednesday. "The Authority's work has already reshaped the Central Valley. We have built many of the viaducts, overpasses, and underpasses on which the first 119 miles of high-speed rail track will run." "In short, FRA's conclusions are based on an inaccurate, often outright-misleading, presentation of the evidence." An Amtrak Pacific Surfliner train stops at the Moorpark Train Station in Moorpark, California, on June 15, 2024. An Amtrak Pacific Surfliner train stops at the Moorpark Train Station in Moorpark, California, on June 15, 2024. Getty Images Trump previously threatened to withdraw federal funding for the project, telling reporters in May: "It's hundreds of billions of dollars for this stupid project that should have never been built. This government is not going to pay." Last week, the California High-Speed Rail Authority announced the completion of 53 structures and almost 70 miles of guideway between Merced and Bakersfield. The finished structures include the 4,741-foot San Joaquin River Viaduct in Fresno and the Hanford Viaduct in Kings County, which the authority described as the largest structure in the Central Valley for high-speed rail. What People Are Saying U.S. Transportation Secretary Sean Duffy, in a statement: "I promised the American people we would be good stewards of their hard-earned tax dollars. This report exposes a cold, hard truth: CHSRA has no viable path to complete this project on time or on country deserves high-speed rail that makes us proud – not boondoggle trains to nowhere." What Happens Next The rail project is entering the tracklaying phase this year, with much of its Central Infrastructure already completed.
Axios
06-06-2025
- Business
- Axios
California high-speed rail project faces reckoning
California's high-speed rail project was billed as the future of transportation, but with President Trump moving to pull $4 billion in federal funds, its future remains precarious. Why it matters: The system was initially slated for completion in 2020. But because of funding challenges and other delays, construction has not started beyond the 171-mile segment in the Central Valley, which would connect San Francisco to Los Angeles and Anaheim. Driving the news: In a 310-page compliance review released this week, the Federal Railroad Administration (FRA) called the project a "story of broken promises." Citing mismanagement of budget shortfalls, missed deadlines, costly change orders, and the "lack of a credible plan" to close the $7 billion funding gap needed for the Central Valley segment, the FRA said it sees "no viable path" to a completed system. The California High Speed Rail Authority (CHRSA) has 37 days to respond to the review before the FRA moves to withdraw federal grants. The other side: The CHSRA said in a statement after the report's release that it "strongly disagrees with the FRA's conclusions, which are misguided and do not reflect the substantial progress made." It added, "The Authority will fully address and correct the record in our formal response." Sens. Adam Schiff and Alex Padilla also issued a statement calling the announcement "devastating" for Californians. Between the lines: One reason for the missed deadlines is a California policy that requires utility companies to review and approve relocation plans before public utility infrastructure can be moved to accommodate construction for a government project. The CHSRA inspector general said in a February assessment that there is "little incentive" for owners to do so in a timely manner and that CHSRA should instead work with legislators to revise state laws to minimize third-party delays. By the numbers: Spending for the project totals $14 billion, with 82% from the state and 18% from federal funds. The entire budget for the system is almost $100 billion higher than the original $33 billion estimate provided in 2008, when voters approved the ballot to initiate the project. Yes, but: Californians still largely support the endeavor. A recent Politico-UC Berkeley poll found that 67% of registered voters in the state back the project, compared to 33% who oppose. It's especially well-regarded in the Central Valley, where it's helped create more than 15,000 jobs, per the governor's office.
Daily Mail
05-06-2025
- Business
- Daily Mail
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 '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 .
Yahoo
05-06-2025
- Business
- Yahoo
Trump drives California into the arms of high-speed rail
President Donald Trump is about to snatch $4 billion away from California's high-speed rail project — and all that's doing is reinforcing Democrats' iron-willed support for the beleaguered venture. The Trump administration said Wednesday — in the form of a 300-page report — that it's on the verge of nixing Biden-era grants for the planned rail line from Los Angeles to the Bay Area, a conclusion state officials have feared since the president put the project in his crosshairs in February. Rather than being a death knell for a project that's years behind schedule and has a price tag that's ballooned from $33 billion to as much as $128 billion, Trump's attacks are fortifying state Democrats who hold the purse strings to its largest funding source — the state's emissions trading program for greenhouse gases. 'We've seen this coming and we're going to do everything we can to prevent it,' said Senate Budget Committee Chair Scott Wiener. 'Regardless of what happens here, we're committed to making this project a reality.' It's been a question just how much Democratic support the project would garner during negotiations to reauthorize the state's emissions trading system, as several lawmakers made it clear at the start of the year that high-speed rail isn't their priority amid finite climate funding. That uncertainty made its way into the Federal Railroad Administration's report, which, among other arguments, points to the lack of 'long-term stability of cap-and-trade proceeds' as a reason to cancel grants. But Trump's dual assaults on high-speed rail and cap-and-trade itself lit a fire under Gov. Gavin Newsom, who committed to reauthorizing the program this year after initially waffling on timing and championed a proposal to guarantee the rail line at least $1 billion in funding annually in his budget proposal last month. Republican lawmakers who've long blasted the project as a waste of taxpayer dollars are taking a victory lap. 'Hopefully, this will be the beginning of the end for high-speed rail,' Rep. Kevin Kiley (R-Calif.) said during a press conference. 'This project needs to be over. It has been the biggest public infrastructure failure in American history.' Newsom spokesperson Daniel Villaseñor, when asked about Wednesday's news, pointed to the governor's budget press conference, where he doubled down on his support. 'I want to get it done, and that's our commitment. That's why it's still reflected in the cap-and-trade extension,' Newsom said. Carol Dahmen, the High-Speed Rail Authority's chief of strategic communications, said in a statement that the agency will 'correct the record' on the Trump administration's 'misguided' decision. But she also highlighted Newsom's proposal, saying $1 billion annually will be enough to 'complete the project's initial operating segment' from Bakersfield to Merced. Democrats' continued backing of high-speed rail also reflects an important reality of California politics: Labor unions can still make or break you. That's a lesson former Rep. and gubernatorial candidate Katie Porter learned last month, after she bashed the project in a TV appearance before recalibrating at a labor event and saying she wants to 'put people to work, and I want to get it done for Californians.' A coalition of powerful labor and public government interests announced its cap-and-trade priorities last month, a list of infrastructure projects including high-speed rail. The project has employed nearly 15,000 union workers since construction started in 2015, more than any other infrastructure undertaking in the country. 'The time to double down is now,' said Michael Quigley, executive director of the California Alliance for Jobs, which represents carpenters, laborers, contractors and other construction unions. Like this content? Consider signing up for POLITICO's California Climate newsletter.
Politico
05-06-2025
- Business
- Politico
Trump drives California into the arms of high-speed rail
President Donald Trump is about to snatch $4 billion away from California's high-speed rail project — and all that's doing is reinforcing Democrats' iron-willed support for the beleaguered venture. The Trump administration said Wednesday — in the form of a 300-page report — that it's on the verge of nixing Biden-era grants for the planned rail line from Los Angeles to the Bay Area, a conclusion state officials have feared since the president put the project in his crosshairs in February. Rather than being a death knell for a project that's years behind schedule and has a price tag that's ballooned from $33 billion to as much as $128 billion, Trump's attacks are fortifying state Democrats who hold the purse strings to its largest funding source — the state's emissions trading program for greenhouse gases. 'We've seen this coming and we're going to do everything we can to prevent it,' said Senate Budget Committee Chair Scott Wiener. 'Regardless of what happens here, we're committed to making this project a reality.' It's been a question just how much Democratic support the project would garner during negotiations to reauthorize the state's emissions trading system, as several lawmakers made it clear at the start of the year that high-speed rail isn't their priority amid finite climate funding. That uncertainty made its way into the Federal Railroad Administration's report, which, among other arguments, points to the lack of 'long-term stability of cap-and-trade proceeds' as a reason to cancel grants. But Trump's dual assaults on high-speed rail and cap-and-trade itself lit a fire under Gov. Gavin Newsom, who committed to reauthorizing the program this year after initially waffling on timing and championed a proposal to guarantee the rail line at least $1 billion in funding annually in his budget proposal last month. Republican lawmakers who've long blasted the project as a waste of taxpayer dollars are taking a victory lap. 'Hopefully, this will be the beginning of the end for high-speed rail,' Rep. Kevin Kiley (R-Calif.) said during a press conference. 'This project needs to be over. It has been the biggest public infrastructure failure in American history.' Newsom spokesperson Daniel Villaseñor, when asked about Wednesday's news, pointed to the governor's budget press conference, where he doubled down on his support. 'I want to get it done, and that's our commitment. That's why it's still reflected in the cap-and-trade extension,' Newsom said. Carol Dahmen, the High-Speed Rail Authority's chief of strategic communications, said in a statement that the agency will 'correct the record' on the Trump administration's 'misguided' decision. But she also highlighted Newsom's proposal, saying $1 billion annually will be enough to 'complete the project's initial operating segment' from Bakersfield to Merced. Democrats' continued backing of high-speed rail also reflects an important reality of California politics: Labor unions can still make or break you. That's a lesson former Rep. and gubernatorial candidate Katie Porter learned last month, after she bashed the project in a TV appearance before recalibrating at a labor event and saying she wants to 'put people to work, and I want to get it done for Californians.' A coalition of powerful labor and public government interests announced its cap-and-trade priorities last month, a list of infrastructure projects including high-speed rail. The project has employed nearly 15,000 union workers since construction started in 2015, more than any other infrastructure undertaking in the country. 'The time to double down is now,' said Michael Quigley, executive director of the California Alliance for Jobs, which represents carpenters, laborers, contractors and other construction unions. Like this content? Consider signing up for POLITICO's California Climate newsletter.
