U.S. Transportation Secretary Sean P. Duffy announced Thursday that the Federal Railroad Administration (FRA) will conduct a comprehensive review of the California High-Speed Rail Authority (CHSRA) to determine whether $4 billion in federal taxpayer funds should remain committed to the embattled project.
The review comes amid growing concerns over massive cost overruns, delays, and mismanagement plaguing the initiative to build high-speed rail in California’s Central Valley.
The California High-Speed Rail project initially envisioned as a transformative link between San Francisco and Los Angeles, has been mired in controversy since its inception. Originally slated for completion by 2020 at a cost of $33 billion, the project has ballooned to an estimated $106 billion—more than three times its initial budget.
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Even the scaled-down Merced-to-Bakersfield segment, which alone now exceeds the original total cost, faces a funding gap of at least $6.5 billion, according to the CHSRA Office of the Inspector General.
“For too long, taxpayers have subsidized the massively over-budget and delayed California High-Speed Rail project,” Secretary Duffy said in a statement. “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 will focus on CHSRA’s compliance with federal grant agreements and its ability to meet project milestones, with major concerns including:
- Cost Overruns: The San Francisco-to-Los Angeles connection alone faces an unfunded gap of $92.6 billion to $103.1 billion, as reported by the CHSRA Peer Review Group in March 2023.
- Delays: The Merced-to-Bakersfield segment, with a projected ridership of just 2 million annually, is unlikely to be completed before 2033.
- Limited Impact: Critics argue that the Central Valley segment fails to connect California’s major urban centers, significantly reducing its potential economic and transportation benefits.
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The review comes as private-sector initiatives like Brightline West demonstrate what can be achieved with efficient planning and execution. Brightline West, which plans to begin high-speed rail service between the Los Angeles region and Las Vegas by 2028, has been praised for its progress and cost-effectiveness.
The $4 billion in federal funds under review represents a significant portion of the CHSRA’s budget. If the FRA determines that the CHSRA has failed to meet its obligations, the funds could be reallocated to other infrastructure projects across the country.
The review highlights the challenges of large-scale infrastructure projects and the importance of rigorous oversight.
For California, the stakes are high. The high-speed rail project was once touted as a model for sustainable transportation in the 21st century. Now, it serves as a tale of what can go wrong when ambition outpaces planning and execution.
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First published by the Daily Caller News Foundation