
US Close to High-Speed Rail Breakthrough
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
When the great and the good of the American high speed rail industry gathered in Washington, D.C. over May 13-15 for the U.S. High Speed Rail Association's (USHSR) 2025 annual conference, there was tremendous excitement tinged with anxiety.
Several attendees told Newsweek they believe the U.S. could be on the verge of a high-speed rail breakthrough, setting the stage for the kind of comprehensive national system enjoyed in the likes of China, Japan and Western Europe.
Ray LaHood, a Republican who served as Transportation Secretary under President Obama from 2009 to 2013, said if one of the two high-speed rail lines currently under construction is completed, it will prove "wildly popular" and boost support for high-speed rail across the nation. Other insiders agreed, but argued permitting reform and more explicit federal support will be needed first.
There has been concern over the Trump administration's attitude toward high-speed rail. The conference took place one month after Transportation Secretary Sean P. Duffy announced $63.9 million in funding for a proposed Dallas to Houston route had been scrapped, and amid rumors that the California High Speed Rail line under construction between Los Angeles and San Francisco could lose federal support.
This week, Duffy said there is "no viable path" to complete California High Speed Rail on time or on budget and warned the federal government could pull billions in funding.
State of U.S. High-Speed Rail
At present there aren't any high-speed rail networks—defined by the International Union of Railways (UIC) as operating at a minimum of 250 kilometers per hour (155 miles per hour) along specially built tracks—that are operational in the U.S.
This compares unfavorably with the likes of Spain, Japan and France, which have around 2,460 miles, 1,830 miles and 1,740 miles of track respectively currently in use.
Former Transportation Secretary Ray LaHood predicted the first high-speed rail line in the U.S. will be "wildly popular."
Former Transportation Secretary Ray LaHood predicted the first high-speed rail line in the U.S. will be "wildly popular."
Photo-illustration by Newsweek/Getty/Canva
Most impressively, China, the chief geopolitical rival of the U.S., has gone from having virtually no high-speed rail lines to nearly 30,000 miles over the past couple of decades.
Construction is currently underway on two high-speed rail lines in the U.S.—Brightline West, which will connect Las Vegas to Southern California, and California High Speed Rail between Los Angeles and San Francisco.
A range of other projects have been proposed around the country, including plans to link Boston, New York and Washington, D.C. in the Northeast; Dallas, Houston and Fort Worth in Texas; and Chicago to East St. Louis in Illinois.
Obstacles
When asked why the U.S. had failed to build a high-speed network comparable to other advanced economies, industry experts told Newsweek there are major issues with permitting, financing and cross-party political support.
California High Speed Rail has sparked particular controversy, with its cost ballooning from $34 billion to over $128 billion, while the completion date has been pushed back.
Terry Hynes, an attorney specializing in rail infrastructure projects, argued planning issues in particular have bottled up capital investment. He is currently part of a team investigating how the permitting process could be sped up for USHSR.
Addressing Newsweek, he said: "I've been in the business 46 years, making railroads, and I've been frustrated as hell representing the high-speed rail...it just takes forever. And there's private money that could be brought in. Wall Street's got a lot of money looking for infrastructure investments.
"This is a wonderful infrastructure investment, the trouble is they see those permitting times. Eight years for environmental review, then you build for four years and in year 13 you're finally going to see some money. Nobody's going to invest in that."
Former Obama era Transportation Secretary Ray LaHood speaking at the U.S. High Speed Rail Association's 2025 annual conference.
Former Obama era Transportation Secretary Ray LaHood speaking at the U.S. High Speed Rail Association's 2025 annual conference.
James Bickerton/Newsweek
Hynes added: "The biggest issue to my mind is this permitting issue. The review period takes so long, the cost goes up and the more expensive it is for people doing a cost-benefit analysis, the analyses looks less beneficial."
Brandon Wheeler, a senior program manager at the North Central Texas Council of Governments, a local government-based voluntary association, said a lack of national leadership has undermined high-speed rail construction across the U.S.
Speaking to Newsweek, he said: "We don't have a national single point of leadership on this...without that single point of leadership it really is a little bit hopscotch and we're making the best we can of it.
"Until there is, like the interstate highway system, there's a national vision to create and you have a vision around the ability to move military and goods and those kinds of things. Until our airports get bad enough, until our roads get bad enough, until people have this massive outcry and we're able to concentrate them on something, we're going to have to find what that single vision is to rally around or we will fall behind the rest of the world."
LaHood agreed, saying: "I think the success of these projects in Europe and Asia is largely due to the national government making investments but then encouraging the private sector. Once the national government makes a commitment, it's easier for the private sector then—they know it's going to be a stable project, they know their investment is going to be good."
If You Build It They Will Come
In 2023, Brightline, the first privately built rail line in the U.S. to open in nearly a century, began operations between Miami and Orlando in Florida and has since seen passenger numbers surge.
While Brightline runs below the high-speed standard, LaHood said it showed Americans are ready to embrace new rail networks, and argued one successful project in the U.S. could turbocharge the whole industry.
"If you look at the Brightline project in Florida...It is wildly popular," he said. "They're putting more and more trains on that track every day because people like the idea that they don't have to get on the I95 and they don't have to travel on highways that are crowded with big trucks and cars...
The U.S. High Speed Rail Association's 2025 annual conference in Washington, D.C.
The U.S. High Speed Rail Association's 2025 annual conference in Washington, D.C.
James Bickerton/Newsweek
"If you build it they will come, if you build it it will be successful and I think that will be the case with Brightline West, Las Vegas to L.A., and I think it will be true San Francisco to L.A. I think they will be wildly popular. I really believe at this point if you build it they will come and the proof of that is Europe and Asia—their trains are wildly popular."
Speaking to Newsweek, Portland Mayor Keith Wilson, who is advocating for a "Cascadia" high-speed rail line linking the city to Seattle in Washington and Vancouver in British Columbia, said: "Our system continues to be compacted and stagnant.
"The great cities from around the world are all tending to go towards high-speed rail and we need an opportunity to unlock our economic renaissance, which is what's missing in our country right now, and high-speed rail would move us forward and get us completing again with the world."
Trust Fund
A number of industry insiders told Newsweek the formation of a federal government trust fund could provide the financial muscle for a major U.S. high-speed rail expansion.
Asked what one development would most speed up U.S. high-speed rail, Jim Derwinski, executive director of Chicago rail system Metra, replied: "A trust fund so it's national, it's bipartisan so it doesn't change from administration to administration and it can be supported through the states as a national effort.
"If you're going to build something, to compare it to Europe and Asia right now, it's got to have a national campaign right now."
Arthur Sohikian is executive director of High Desert Corridor, a proposed high-speed rail line that would link Brightline West to the California High Speed Rail line.
He expressed a similar view to Derwinski, telling Newsweek: "We have to energize the public to make that happen...we've been trying to get a trust fund for rail since I started my career, it seems.
"For whatever reason why the politicians won't grab onto that and won't do that, especially when you realize the Highway Trust Fund keeps diminishing as cars get more efficient, we're paying less in gas taxes, that fund is diminishing...we have to invest in this infrastructure as a nation, and until that happens, seriously, we're all going to be trying to do our little pieces."
The U.S. High Speed Rail Association paid travel and hotel expenses for Newsweek reporter James Bickerton to attend its 2025 annual conference.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a few seconds ago
- Yahoo
BofA Poll Shows Record Number of Investors Say Stocks Overvalued
(Bloomberg) -- A record share of fund managers see US stocks as too expensive after the sharp rally since April lows, according to a monthly survey by Bank of America Corp. Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis Three Deaths Reported as NYC Legionnaires' Outbreak Spreads A New Stage for the Theater That Gave America Shakespeare in the Park Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms About 91% of participants indicated that American stocks are overvalued, the highest ever proportion in data going back to 2001. While investor allocation to global equities climbed to the highest since February, a net 16% were still underweight the US, the poll showed. Overall sentiment improved to the most bullish in six months, since before President Donald Trump's sweeping tariffs roiled financial markets and stoked worries about a recession. BofA strategist Michael Hartnett said investors now see the lowest probability of a hard landing since January. US stocks have scaled record highs on signs of a better-than-expected corporate earnings season and optimism that the Federal Reserve will lower interest rates as economic growth slows. That's prompted market forecasters including at Citigroup Inc. to turn more optimistic about the S&P 500's trajectory in the second half. Still, some strategists such as BofA's Hartnett have warned the rally risks overheating into a bubble given a potential easing in both monetary policy and financial regulation. The bank's August survey showed cash levels as a percentage of total assets remained at 3.9%, a level that is consistent with a so-called sell signal for stocks. Other highlights from the poll, which was conducted from July 31 to Aug. 7 and canvassed 169 participants with $413 billion in assets: About 68% said a soft landing is the most likely outcome for the global economy in the next 12 months; 22% say no landing, and just 5% predict a hard landing A net 49% say EM stocks are undervalued, most since February 2024 Inflation expectations rose to a three-month high, with a net 18% expecting a higher reading of the global consumer price index Biggest tail risks: trade war triggers global recession (29%), inflation prevents Fed rate cuts (27%), disorderly rise in bond yields (20%), AI equity bubble (14%), dollar debasement (6%) Most crowded trades: long Magnificent Seven (45%), short dollar (23%), long gold (12%) The Game Starts at 8. The Robbery Starts at 8:01 The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Digital Nomads Are Transforming Medellín's Housing It's Only a Matter of Time Until Americans Pay for Trump's Tariffs Russia's Secret War and the Plot to Kill a German CEO ©2025 Bloomberg L.P.

Business Insider
3 minutes ago
- Business Insider
Bad news for US shoppers: The cost of everything from laptops to cars is likely to keep rising
American consumers are beginning to feel the pinch from the US's latest wave of import tariffs, and the pain is expected to get worse. Since returning to office, President Donald Trump has imposed a blanket 10% baseline tariff on all foreign imports, additional varying rates on specific countries, and a series of product-specific duties, including on automobiles. So far, consumers have absorbed just 22% of the tariff costs associated with this year's increases, according to a new Goldman Sachs report published Sunday. But by October, that share could rise to 67%, if pricing patterns continue to follow those observed earlier in the year. Goldman reached that conclusion by analyzing import and consumer price data through June. "Descriptive evidence shows that goods categories heavily exposed to imports have indeed experienced sizable price increases since the beginning of this year, relative to their prior trends," they wrote. Specifically, prices of household appliances and information processing equipment — such as computers and electronics — have increased by 7.5 percentage points more than what they would've cost without the tariffs, they wrote. What's especially striking is who's been absorbing tariff costs so far. US businesses have born the brunt, covering about 64% of costs through midyear, Goldman found. Meanwhile, foreign exporters have cut prices to stay competitive, absorbing around 14%. But that's expected to change. According to Goldman, tariffs have already contributed about 0.20 percentage points to core Personal Consumption Expenditures inflation — the Federal Reserve's preferred inflation measure. They expect an additional 0.16% increase in July, and another 0.5% from August through December. Some major companies, including Adidas and Walmart, have said that they will be hiking prices in the US. That means consumers may face higher prices on everything from electronics to cars heading into the holiday shopping season. Goldman expects core PCE inflation at 3.2% year over year by December — well above the Fed's 2% target. Without tariffs, Goldman says, the underlying inflation trend would be closer to 2.4%. Treasury data shows that the federal government has collected over $100 billion from customs duties so far this year — a sign that "someone is paying" for the tariffs, wrote Deutsche Bank last month.


Politico
3 minutes ago
- Politico
Another megabill? Senate Republicans have their doubts.
And Senate Finance Committee Chair Mike Crapo (R-Idaho) said he's open to considering as many as 200 tax proposals from his members that were ultimately not included in the first megabill. But most senators have questions about what could go into another reconciliation package — and they're casting doubts on whether it's even politically possible to do this all over again. 'You have to have a reason to do it,' said Sen. Mike Rounds (R-S.D.). 'It's not easy to do, so you have to have a purpose for doing it in the first place.' That unifying purpose for Republicans the first time around was a desire to deliver Trump a major legislative victory early in his second term and prevent a tax hike that they feared would weaken the economy. Republican leaders' decision to throw in a debt limit extension through 2026 as Treasury warned the nation would soon exceed its borrowing authority added a do-or-die incentive. 'Without the pressure, I don't see how you get it done,' said one Republican senator, granted anonymity to speak freely, about prospects for passing a second reconciliation bill without an existential impetus for action. 'I don't think I see what the pressure is here.' At the same time, despite the White House's enthusiasm for another reconciliation bill, administration officials have not yet told lawmakers what policies they want considered, according to three people speaking on condition of anonymity. Sens. Roger Wicker (R-Miss.) and Lindsey Graham (R-S.C.) — chairs of the committees on Armed Services and Budget, respectively — also said before leaving for recess they have not received guidance from the White House. Sen. Ted Cruz (R-Texas), chair of the Senate Commerce Committee, said he still hadn't heard from the administration about its broader set of legislative priorities heading into the fall. At this point, the loudest reconciliation push in the Senate is coming from deficit hawks like Sen. Ron Johnson, who wants to use another bill to cut spending further than what conservatives were able to achieve in the first package.