The U.S. Transportation Secretary Sean Duffy has announced that the Federal Railroad Administration (FRA) terminated approximately USD 4 billion in unspent federal funding for California’s high-speed rail project.
After 16 years and roughly USD 15 billion spent, not one high speed track has been laid by the California High-Speed Rail Authority (CHSRA). The USD 135 billion projected total cost of the project could buy every San Francisco and LA resident nearly 200 roundtrip flights between the cities.
“Federal dollars are not a blank check – they come with a promise to deliver results. After over a decade of failures, CHSRA’s mismanagement and incompetence has proven it cannot build its train to nowhere on time or on budget,” Sean Duffy said.
In addition to canceling USD 4 billion in unspent federal funds to CHSRA, Secretary Duffy has directed FRA to review other obligated and unobligated grants related to the CHSRA project. The Department of Transportation will also consult with the Department of Justice on the finding of FRA’s Compliance Review, including potentially clawing back funding related to California’s train to nowhere and other potential issues under Federal law.
The decision follows FRA’s exhaustive compliance review, after which the California High-Speed Rail Authority (CHSRA) was given two opportunities to respond consistent with the grant agreements. Neither response addressed FRA’s significant concerns. CHSRA simply cannot meet its obligations under the grant agreement.
A report from February highlights serious issues regarding the California’s high-speed rail project, including that CHSRA would not complete the Merced to Bakersfield line by 2033. The Phase 1 of the project will connect San Francisco to Anaheim via the Central Valley in less than three hours. Work has begun to extend the 191 km Central Valley segment currently under construction to 275 km from Merced to Bakersfield.
The 795 km Phase 1 of the line will link San Francisco, crossing Merced, Fresno and Bakersfield, towards Los Angeles, and Anaheim. Phase 2 will extend the system to Sacramento and San Diego which will include stops in six cities.
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