WASHINGTON, D.C. — The Federal Railroad Administration (FRA) has launched a formal review of the California High-Speed Rail Authority (CHSRA) following an order from U.S. Secretary of Transportation Sean P. Duffy. The review is intended to evaluate whether CHSRA has adhered to the conditions associated with the roughly $4 billion in federal funding allocated to its high-speed rail initiative in the Central Valley—a project that has faced staggering delays and ballooning costs since its inception.
The California High-Speed Rail project was originally envisioned as a revolutionary transportation system connecting San Francisco to Los Angeles by 2020 at an estimated cost of $33 billion. However, the schedule and budget have since spiraled far beyond initial predictions. The proposed segment between Merced and Bakersfield alone is now projected to exceed the original cost for the full rail line, with total estimated costs for the entire project currently reaching $106 billion—more than three times the initial estimate.
“For too long, taxpayers have subsidized the massively over-budget and delayed California High-Speed Rail project,” stated Secretary Duffy. “President Trump is right that this project is in dire need of an investigation. That is why I am directing my staff to review and determine whether the CHSRA has followed through on the commitments it made to receive billions of dollars in federal funding. If not, I will have to consider whether that money could be given to deserving infrastructure projects elsewhere in the United States.”
The FRA’s review comes alongside a dire appraisal of the project’s progress from the CHSRA Office of the Inspector General, which recently reported a funding shortfall of at least $6.5 billion for the Merced-to-Bakersfield segment alone. This segment, projected to serve fewer than 2 million annual riders due to its disconnection from California’s largest cities, is now unlikely to be completed until at least 2033, according to the Inspector General.
Further skepticism was raised in a March 2023 report by the CHSRA Peer Review Group, which identified a funding gap of $92.6 billion to $103.1 billion for the full San Francisco-to-Los Angeles rail connection. These financial and operational challenges, paired with the criticisms surrounding the project, have intensified federal scrutiny.
The slower-than-anticipated progress by CHSRA stands in stark contrast to the advancements made by Brightline West, a private rail operator working to introduce a high-speed route between the Los Angeles area and Las Vegas. Brightline West expects to commence service by 2028, underscoring the differing rates of progress between public and private rail initiatives.
The FRA’s compliance and performance review will focus on examining CHSRA’s adherence to the terms of federal grant agreements, specifically whether the authority is meeting its obligations under the FRA-administered funding awards. The findings of this review could determine whether ongoing federal funds will continue to support the project or be redirected to other infrastructure efforts across the nation.
With growing nationwide concerns over the responsible allocation of taxpayer dollars, the outcome of this review carries significant implications not only for the California High-Speed Rail project but also for the future of federally funded infrastructure initiatives. The FRA’s assessment could mark a pivotal moment in determining how large-scale public transportation projects are evaluated, funded, and managed in the United States.
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