The Trump administration has discovered that it will advance a “workable path” to complete California’s high-speed rail projects, following nearly four months of research that puts $4 billion at risk in federal funding.
In a 315-page compliance review released Wednesday, the Department of Transport cited the expected misleading ridership connecting San Francisco to Los Angeles on the first rails of budget shortages, missed deadlines and misleading. This review covers federal grants for the construction of the Central Valley. These funds could be withdrawn within 37 days following the response from the High Speed Rail Bureau.
“Chsra relied on the endless Spigot wish of federal taxpayer dollars,” wrote Drew Feely, acting manager of the Federal Railway Administration. “Essentially, Chsra told taxpayers through their $4 billion investment, but there is no viable plan to provide that partial segment on time.”
The High Speed Railroad Bureau opposed the findings that were called “misguided” and inaccurate reflections of the project.
“The authorities will fully address and correct our formal response record,” the spokesman said. “We are firmly committed to completing the country’s first true high-speed rail system connecting the state’s major population centers.”
Authority leaders had previously issued warnings about potential losses in federal funds while voting for a new contract to advance construction and design in Central Valley. CEO Ian Choudri also said public-private partnerships will be key to the future of the project. This is an idea also raised by the state-appointed advisory committee. The latest state budget proposal also extends at least $1 billion a year to the project over the next 20 years.
Approximately $14 billion has been spent on the project. The majority of that funding (82%) was sourced from the state, with 18% granted by the federal government. The Trump administration is currently not seeking repayment of past federal funds, according to the review.
This project has faced major challenges since its establishment. The budget is about $100 billion more than the officials’ original $33 billion estimate in 2008, so tens of thousands of dollars have yet to be identified. The train was originally proposed on the completion date in 2020, but construction is limited to 171 miles of stretch in Central Valley. And the entire line between San Francisco and Los Angeles was environmentally cleared last year for construction, but some have not been completed.
Transportation Secretary Shawn Duffy began a review in February after Republican lawmakers urged President Trump to investigate the project. Last month, Trump said the federal government would not pay for the project.
Proponents of the Transit protested against Duffy’s announcement and Rep. Laura Friedman (D-Glendale), who is sitting on a House Committee on Transportation and Infrastructure, raising concerns about whether the possibility of a withdrawal of the federal dollar in the megaproject could demonstrate similar behavior in other transport projects awaiting commitments from the Trump administration.
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