Latest news with #CHSRA
Axios
30 minutes ago
- Business
- Axios
California high-speed rail project faces reckoning
California's high-speed rail project was billed as the future of transportation, but with President Trump moving to pull $4 billion in federal funds, its future remains precarious. Why it matters: The system was initially slated for completion in 2020. But because of funding challenges and other delays, construction has not started beyond the 171-mile segment in the Central Valley, which would connect San Francisco to Los Angeles and Anaheim. Driving the news: In a 310-page compliance review released this week, the Federal Railroad Administration (FRA) called the project a "story of broken promises." Citing mismanagement of budget shortfalls, missed deadlines, costly change orders, and the "lack of a credible plan" to close the $7 billion funding gap needed for the Central Valley segment, the FRA said it sees "no viable path" to a completed system. The California High Speed Rail Authority (CHRSA) has 37 days to respond to the review before the FRA moves to withdraw federal grants. The other side: The CHSRA said in a statement after the report's release that it "strongly disagrees with the FRA's conclusions, which are misguided and do not reflect the substantial progress made." It added, "The Authority will fully address and correct the record in our formal response." Sens. Adam Schiff and Alex Padilla also issued a statement calling the announcement "devastating" for Californians. Between the lines: One reason for the missed deadlines is a California policy that requires utility companies to review and approve relocation plans before public utility infrastructure can be moved to accommodate construction for a government project. The CHSRA inspector general said in a February assessment that there is "little incentive" for owners to do so in a timely manner and that CHSRA should instead work with legislators to revise state laws to minimize third-party delays. By the numbers: Spending for the project totals $14 billion, with 82% from the state and 18% from federal funds. The entire budget for the system is almost $100 billion higher than the original $33 billion estimate provided in 2008, when voters approved the ballot to initiate the project. Yes, but: Californians still largely support the endeavor. A recent Politico-UC Berkeley poll found that 67% of registered voters in the state back the project, compared to 33% who oppose. It's especially well-regarded in the Central Valley, where it's helped create more than 15,000 jobs, per the governor's office.
Yahoo
a day ago
- Business
- Yahoo
Trump administration plans to cut $4 bn from California rail
The Trump administration intends to pull some $4 billion in federal funding from California's long-delayed high-speed rail project, transportation officials say. The announcement Wednesday by the Department of Transportation follows a report by federal railroad regulators, which concluded the project to link the state's megacities Los Angeles and San Francisco was rife with "missed deadlines, budget shortfalls, and overrepresentation of projected ridership." "I promised the American people we would be good stewards of their hard-earned tax dollars," Transportation Secretary Sean Duffy said in a statement. "This report exposes a cold, hard truth: CHSRA has no viable path to complete this project on time or on budget," he added, referring to California High-Speed Rail Authority. Duffy said California's rail agency has 37 days to respond to the findings of the review before the two grants worth some $4 billion would be terminated. CHSRA said it strongly disagreed with Federal Railroad Administration's conclusions, adding they "do not reflect the substantial progress made." "We remain committed to completing the nation's first true HSR system & will fully address + correct the record in our response to the FRA's notice," the rail authority said. California's Democratic lawmakers also strongly denounced the decision by President Donald Trump's Republican administration. "For the millions of Californians left to pick up the tab for Trump's reckless trade wars and rising costs of living, today's announcement is devastating," Alex Padilla and Adam Schiff said in a statement. Despite being the world's largest economy, the United States does not have high-speed rail lines and the California project has been 15 years in the making. Another high-speed rail line is planned to open in 2028 in the neighboring state of Nevada, connecting Las Vegas to Los Angeles in time for the Summer Olympics hosted by the United States. fz/elc/eb/md/rsc
Daily Mail
2 days ago
- Business
- Daily Mail
Taxpayer cost for California's High-Speed Rail project revealed
The Trump administration is considering pulling federal funding from California 's High-Speed Rail project after the US Department of Transportation revealed no track has been laid despite nearly $7 billion in taxpayer funds spent over 15 years. The ambitious project, initially approved by voters in 2008 with a $10 billion budget, aimed to connect major cities in California, however, costs have escalated dramatically, with the total projected cost now ranging from $89 billion to $128 billion. The Federal Railroad Administration has since issued a scathing 315-page report which cites key issues with the troubled project including missed deadlines, budget overruns and unreliable ridership projections. The White House has now initiated a review to determine whether to rescind an additional $4 billion in federal grants allocated for the project's completion. The embattled rail line faces further roadblocks with a $7 billion funding gap for the Merced-to-Bakersfield segment, even before the Trump administration considers pulling the $4 billion in federal funds. The entire San Francisco-to-Los Angeles project was initially supposed to be completed by 2020 for $33 billion, Reuters reported - but the project is far from completion of any phase. The Transportation Secretary emphasized that if the California High-Speed Rail Authority (CHSRA) cannot demonstrate progress, the federal government may redirect funds to other infrastructure projects. 'CHSRA is on notice - If they can't deliver on their end of the deal, it could soon be time for these funds to flow to other projects that can achieve President Trump's vision of building great, big, beautiful things again,' he said. 'Our country deserves high-speed rail that makes us proud - not boondoggle trains to nowhere.' In response, CHSRA defended the project, asserting that over 15,000 jobs have been created and 119 miles are under active construction. 'There is active civil construction along 119 miles in the Central Valley, resulting in over 15,000 construction jobs, and design and pre-construction activities are underway on the extensions to Merced and Bakersfield totaling 171 miles,' as per a CHSRA statement. The CHSRA added that most of its funding comes not from federal origins but rather from the state of California. 'We remain firmly committed to completing the nation's first true high-speed rail system connecting the major population centers in the state. While continued federal partnership is important to the project, the majority of our funding has been provided by the state. To that end, the Governor's budget proposal, which is currently before the Legislature, extends at least $1 billion per year in funding for the next 20 years, providing the necessary resources to complete the project's initial operating segment,' a CHSRA spokesperson told the 'The Authority will fully address and correct the record in our formal response to the FRA's notice,' the authority added. The federal government has given California until mid-July to respond to the review - if the CHSRA fails to provide satisfactory evidence of progress, the $4 billion in federal grants may be rescinded. In 2021, then-President Joe Biden restored a $929 million grant for the high-speed rail, funds which Trump had revoked in 2019 after he called the project a 'disaster,' Reuters reported. Now, all eyes are on the Golden State's response and whether the innovative rail project can overcome its financial and logistical challenges. The California High-Speed Rail System is a planned two-phase 800-mile system with speeds of up to 220 miles per hour that aims to connect San Francisco to Los Angeles/Anaheim and in the second phase extend north to Sacramento and south to San Diego .
Yahoo
2 days ago
- Business
- Yahoo
Duffy threatens to pull California's high speed rail funding
The Trump administration notified California officials Wednesday that federal funding for the state's massive high-speed rail project is at risk of being pulled after a four-month review concluded the California High-Speed Rail Authority (CHSRA) has 'no viable path' to complete the project on time or on budget. 'CHSRA is on notice — If they can't deliver on their end of the deal, it could soon be time for these funds to flow to other projects that can achieve President Trump's vision of building great, big, beautiful things again,' Transportation Secretary Sean Duffy said in a statement in the Federal Railroad Administration's (FRA) 310-page compliance review. 'Our country deserves high-speed rail that makes us proud – not boondoggle trains to nowhere.' The Department of Transportation (DOT) has given the CHSRA 'up to 37 days' to respond before it moves forward with terminating two grants worth roughly $4 billion. A CHSRA spokesperson told The Hill that the state agency 'strongly disagrees' with the federal government's assessment of the project's progress, noting that most of the money for the high-speed rail system is coming from the state. 'We remain firmly committed to completing the nation's first true high-speed rail system connecting the major population centers in the state,' the spokesperson said. 'To that end, the Governor's budget proposal, which is currently before the Legislature, extends at least $1 billion per year in funding for the next 20 years, providing the necessary resources to complete the project's initial operating segment.' Gov. Gavin Newsom (D) addressed concerns about the project's future under the Trump administration during a news conference in Sacramento last month. 'You can see the progress we've actually made with our high-speed rail system,' he told reporters. 'We're now on the other side of the environmental reviews; we're on the other side of the land acquisition.' 'We're now on the other side, and we want to get this done,' he added. The FRA report highlighted the project's change in scope since its initial approval in 2008 under then-Gov. Arnold Schwarzenegger (R). 'The purpose of the Federal commitment was clear: to facilitate the delivery of true high-speed rail and serve as a catalyst for future deployment of high-speed rail beyond California,' FRA acting Administrator Drew Feeley wrote in a letter to CHSRA officials. 'FRA cannot continue to commit taxpayer dollars to CHSRA's Sisyphean endeavor, which now stands as a fraction of what was promised back in 2008.' 'In short, the CHSR project is a story of broken promises and of waste of Federal taxpayer dollars,' he added. Additionally, he wrote that the federal government is not seeking reimbursement from the state 'at this time' for money already distributed but noted the FRA 'reserves the right to do so consistent with applicable law.' The CHSRA spokesperson said the state plans to 'fully address and correct the record in our formal response.' Duffy launched the review of California's high-speed rail project shortly after he was confirmed for as Transportation chief in February. According to the DOT, the investigation's findings were based on discussions with state oversight and CHSRA officials, construction site visits, a risk analysis and reviews of 'several thousand documents.' It cited numerous change orders, increased costs, missed deadlines, funding gaps, construction delays, and questions about ridership projections among the most severe concerns raised. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
2 days ago
- Business
- Yahoo
California's High Speed Rail Project Could Lose All of Its Federal Funding, New Report Says
California's High Speed Rail Project Could Lose All of Its Federal Funding, New Report Says originally appeared on L.A. Mag. The U.S. Department of Transportation released a report revealing issues with California's high-speed rail project. The project is in default of its federal grant terms, which consist of $4 billion in taxpayer dollars, according to the Federal Railroad Administration (FRA). The California High-Speed Rail project surfaced in 2008 as a two-phase system that would cover 800 miles, connecting Los Angeles to San Francisco, and later extending north to Sacramento and south to San report outlines several issues with the California High-Speed Rail Authority (CHSRA)'s project, including construction delays, mismanagement, unsustainability and high costs. The findings are based on the FRA's investigation, where they visited construction sites, contacted CHSRA officials and oversight entities and reviewed thousands of documents. The administration cited missed deadlines, budget shortfalls and overrepresented ridership projections. According to the report, there has been nearly $7 billion dollars in federal funding put toward the high-speed rail project in the last 15 years, and no track has been laid. U.S. Transportation Secretary Sean P. Duffy has expressed his concern about the direction of the project."I promised the American people we would be good stewards of their hard-earned tax dollars,' Secretary Duffy said in a statement. 'This report exposes a cold, hard truth: CHSRA has no viable path to complete this project on time or on budget.'Secretary Duffy also warned the CHSRA, "If they can't deliver on their end of the deal, it could soon be time for these funds to flow to other projects that can achieve President Trump's vision of building great, big, beautiful things again.'CHSRA has just 37 days to respond to the report. If they fail to provide a satisfactory response, they could lose all of their federal grants, and the money would be reallocated to other projects. This story was originally reported by L.A. Mag on Jun 4, 2025, where it first appeared.
