California's high-speed rail leaders sound alarm over project's financial future
As California's High-Speed Rail Authority awaits word from the Trump administration over its future support for the train, leaders who oversee the project sounded the alarm about its financial viability.
The authority's board of directors voted Thursday to approve contracts for the development of Central Valley station designs and to solicit and approve construction bids for the Fresno station. Ahead of the votes, board member James Ghielmetti raised concerns over the potential loss of funds from the Department of Transportation and the risk of moving forward on payment commitments when federal funding is in jeopardy.
'I'm very nervous about receiving the federal funding,'Ghielmetti said. 'I want to make sure my fellow board members are aware that if the federal money does not come through, somebody's got to backstop these contracts.'
Authority staff said that contracts include termination clauses if there isn't enough money and that contingency funds existed to make up a shortfall if funding fell through. Ghielmetti argued that the termination of any contract would only move the project further off course and stressed that if the goal is to get back on schedule, those funds need to exist.
The board consists of nine members, each serving four-year terms, tasked with approving policies related to the project's businesses, finances and strategies. Board member Martha Escutia echoed Ghielmetti's concerns and said that a financial plan needs to be cemented as the board continues to vote on how money will be spent.
'We are obviously in trouble,' she said.
The Department of Transportation initiated a compliance review of the project in February following calls for an investigation by Republican lawmakers over delays and costs. The review is focusing on a $4-billion promise made under the Biden administration for construction in the Central Valley.
The project, which originally set out to connect Los Angeles to San Francisco via train by 2020, is $100 billion over its original budget and years behind schedule — a problem that rail experts have said will only worsen if the funding pool shrinks. Transportation Secretary Sean Duffy called it a 'crappy project' and said that the D.O.T. review would analyze whether the spending aligned with the authority's agreements with the U.S. government.
The authority has provided documentation and expects findings soon.
Roughly $14 billion has been spent on the project, Board Chair Tom Richards said. The bulk of that funding — 82% — has been supplied by the state; the remaining 18% has been granted by the federal government. About $4 billion is in the bank, Richards said.
Despite uncertainty over federal funding, CEO Ian Choudri said the immediate goal is to finish construction along a 119-stretch between Madera and Shafter in the Central Valley. Choudri, who took the CEO role last year and reports to the board, also said that investment from the private sector will be key to the project's future. Pending state approval, he hopes to have a financial plan in place by end of summer that would include that relationship.
The idea of the project's need for public-private partnerships, and reliance outside of the government, is one that's been floated in board meetings and has regularly been raised by members of the state-appointed committee who advises the board.
Even with that support, Choudri said it could take roughly two more decades before the train is completed.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Boston Globe
14 minutes ago
- Boston Globe
Is Trump's troop deployment in LA a prelude to martial law?
Neither did Hegseth announced that National Guard members and the Marines will stay in Los Angeles for Get The Gavel A weekly SCOTUS explainer newsletter by columnist Kimberly Atkins Stohr. Enter Email Sign Up At a Advertisement This is a Trump made-for-TV spectacle of authoritarianism disguised as law and order. It's likely a prelude to martial law. Rob Bonta, California's attorney general, is Advertisement Protests were sparked last week after Immigration and Customs Enforcement officials conducted several workplace raids in Los Angeles, including a But what began as boisterous but peaceful protests against Trump's anti-immigrant scheme which now demands 'If I didn't ''SEND IN THE TROOPS,'" Trump said Tuesday on social media, Los Angeles 'would be burning to the ground right now,' before he disparaged Bass and Newsom. Yes, there has been looting, and some cars have been burned and vandalized. But Trump is lying about the extent of lawlessness. Trump is following his bad policies with even worse provocations that could portend a modern-day Kent State tragedy with soldiers firing live bullets at protesters. But for Trump, the more chaos, the better. As a White House official said, 'We're happy to have this fight.' To some extent this fight to suppress dissent has been boiling in Trump for five years. During nationwide demonstrations after the police murder of George Floyd in 2020, Trump, then in his first term, asked members of his Cabinet whether protesters could be shot. 'He thought that the protests made the country look weak, made us look weak, and 'us' meant him,' Mark Esper, Trump's former defense secretary, Advertisement Esper recalled Trump saying to now-retired General Mark Milley, then chairman of the Joint Chiefs of Staff, ''Can't you just shoot them, just shoot them in the legs or something?' … It was a suggestion and a formal question. And we were just all taken aback at that moment as this issue just hung very heavily in the air.' Ultimately, Trump was talked out of it. That won't happen this time, with an administration packed with people whose only loyalty is to him, not to the Constitution or rule of law. After Tom Homan, Trump's bloviating border czar, If not for the ICE arrest of But not now. Everything in Trump's second administration is designed to codify his authoritarianism. If Trump can convince enough people, especially among his white base, that he alone represents the thin orange line between civilization — as Advertisement Right now, the administration claims the military is in Los Angeles to protect federal buildings and assets — theoretically. Trump has not invoked the Insurrection Act, but neither has he ruled out unleashing US troops on protesters. With his draconian policies, Trump has lit the fuse for what could be a long and difficult summer of protests. With an occupying military force in this nation's second largest city, he has declared war against America itself. Renée Graham is a Globe columnist. She can be reached at


New York Post
15 minutes ago
- New York Post
Trump promised not to send in military to tamp down on NYC protests — if NYPD keeps demonstrators in line
President Trump promised NYPD brass over the weekend that he will not send in the military or National Guard to tamp down on anti-ICE protests in New York City — as long as cops keep the demonstrators in line, The Post has learned. Trump's pledge was made to Deputy Mayor of Public Safety Kaz Daughtry and NYPD Chief of Department John Chell as the pair palled around with the president at his New Jersey golf club. Sources with knowledge of the meeting said Trump had voiced concerns over the destructive mass protests engulfing Los Angeles and them being replicated in the Big Apple. Advertisement But Chell reassured the president that any demonstrations in the city would not get out of hand, the sources said. Kaz Daughtry and John Chell though didn't tee it up with the commander in chief. Linkedin/john-chell The two Big Apple police officials met with Trump on Sunday. Linkedin/john-chell Advertisement Trump then told the two he didn't believe the National Guard would be necessary in New York City. It came after he ordered an initial 2,000 National Guard troops to LA Saturday amid the raging protests over federal immigration enforcement raids. Since then, the Trump administration has in total dispatched roughly 4,000 National Guard members and 700 Marines to the city– sparking an emergency request by California Gov. Gavin Newsom Tuesday for a federal court to block the deployment. On Monday, Mayor Eric Adams and his police commissioner, Jessica Tisch, decried the anti-ICE riots in Los Angeles and issued a stern warning to New Yorkers to not follow suit. 'The escalation of protests in Los Angeles over the last couple of days is unacceptable and would not be tolerated if attempted in our city,' Adams said. Advertisement Tisch added that 'any attacks against law enforcement will be met with a swift and decisive response from the NYPD.' Earlier Monday, dozens of protestors calling for an end to the ICE raids were arrested at Trump Tower after refusing to leave the Manhattan high-rise. The meeting between Trump and Adams' allies raised eyebrows in New York City political circles — after Daughtry and Chell posted photos on social media from the Bedminster club. 'Great day on the links today with POTUS, #45-#47 – Donald J. Trump. Good conversation with a few laughs and a great lunch. Deputy Mayor of Public Safety Kaz Daughtry and I were grateful for the invite,' Chell wrote. Advertisement Sources said the two Big Apple officials didn't actually tee it up with the prez, despite the photos showing them chatting with him on the links. Still, Adams defended the outing on Tuesday, telling reporters, 'A lot of great deals have been made on the golf course.' 'I thank the two of them for doing it,' he said. 'Many of you who play golf know that great decisions are made on the golf course.' Both Chell and Daughtry also joined the mayor at Trump's inauguration earlier this year.
Yahoo
16 minutes ago
- Yahoo
IQVIA Holdings (NYSE:IQV) Sees 11% Share Price Rise Over Last Week
IQVIA Holdings experienced a 10% rise in share price over the last week, correlating with its recent developments, notably the dosing of the first patient in the RENEW Phase 2 trial and its strategic alliance with Sarah Cannon Research Institute to optimize oncology trials. These initiatives likely provided a positive sentiment boost, aligning well with the broader market momentum, as indices such as the S&P 500 also reached new highs. The market's anticipation over US-China trade talks and overall strong corporate earnings have supported the upward trend, further enhancing IQV's market performance. We've identified 1 warning sign for IQVIA Holdings that you should be aware of. Uncover 18 companies that survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. The recent 10% rise in IQVIA Holdings' share price has been influenced by important developments like the dosing in the RENEW Phase 2 trial and a key alliance with Sarah Cannon Research Institute. These initiatives are expected to potentially drive revenue growth, particularly as the strategic alliance optimizes oncology trials. The company's past performance, with total returns of 10.45% over five years, suggests modest growth in investor value. However, compared to the US Life Sciences industry's one-year return of 27% decline, IQVIA's recent rise highlights positive market sentiment. These initiatives, combined with FDA reforms and NVIDIA collaboration, may lower operational costs and have a favorable impact on earnings forecasts. Analysts predict revenue to grow by 5.2% annually over the next three years, which is somewhat cautious compared to the general expectations for the life sciences sector. The recent share price movement to US$146.2 remains below the consensus price target of US$216.31, indicating potential for future appreciation if the projected growth in revenue and earnings materializes. Click here to discover the nuances of IQVIA Holdings with our detailed analytical financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:IQV. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data