The U.S. Federal Railroad Administration announced that has terminated the 2010 agreement with California High-Speed Rail Authority, and it will withdraw USD 929 million grant, as the authority ‘repeatedly’ failed to make reasonable progress on the project as defined in the Agreement.
FRA said that is continues to consider all option regarding to the return of a USD 2.5 billion funding to the authority.
Responding on the decision, California Governor, Gavin Newsom, said that “the Trump Administration’s action is illegal and a direct assault on California, our green infrastructure, and the thousands of Central Valley workers who are building this project.”
At the beginning of 2019, FRA announced its plan to cancel the financing for the high-speed rail project.
In March, California High-Speed Rail Authority asked FRA to reconsider its decision which will gravely harm the ‘historic’ project.
We remind you that in May, the authority’s latest report, underlines a USD 2 billion increased costs on the project, which would have a total needed investment of USD 79 billion the first phase. The costs for Central Valley section, currently under construction, increased from USD 10.8 billion to USD 12.4 billion. The report says that the costs of Silicon Valley – Central Valley line increase from USD 25.1 billion to USD 31.3 billion.