Latest news with #CaliforniaHigh-SpeedRailAuthority
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
2 days ago
- Business
Trump administration signals it will slash funds for long-delayed California high-speed rail project
LOS ANGELES -- The Trump administration signaled Wednesday that it intends to cut off federal funding for a long-delayed California high-speed rail project plagued by multibillion-dollar cost overruns, following the release of a scathing federal report that concluded there is 'no viable path' to complete even a partial section of the line. Voters first authorized $10 billion in borrowed funds in 2008 to cover about a third of the estimated cost, with a promise the train would be up and running by 2020. Five years beyond that deadline, no tracks have been laid and its estimated price tag has ballooned to over $100 billion. In a letter to the California High-Speed Rail Authority, which oversees the project, Federal Railroad Administration acting Administrator Drew Feeley wrote that what was envisioned as an 800-mile system connecting the state's major cities has been reduced to a blueprint for 'a 119-mile track to nowhere.' After a $4 billion federal investment, the California agency 'has conned the taxpayer ... with no viable plan to deliver even that partial segment on time,' Feeley wrote. State officials defended what's known as the nation's largest infrastructure project and said they remain committed to construction, though it's not clear what funding would replace the federal support if it's withdrawn. Feeley noted the FRA could seek repayment of the federal funds but is not proposing to claw back those dollars at this time. Carol Dahmen, the state authority's chief of strategic communications, said in a statement that the federal conclusions are misguided and 'do not reflect the substantial progress made to deliver high-speed rail in California.' Dahmen noted that the majority of the funding for the line has been provided by the state and that Democratic Gov. Gavin Newsom's budget proposal would extend at least $1 billion a year for 20 years to complete an initial segment of the line. State officials are focused on a stretch connecting the Central Valley cities of Bakersfield and Merced, which is set to be operating by 2033. The state agency has about a month to formally respond to the FRA, after which the grants could be terminated. State Sen. Tony Strickland, a Republican from Huntington Beach who is vice chair of the Transportation Committee, said that 'commonsense has prevailed" and urged the Legislature's dominant Democrats to redirect the funds from the rail line to lowering gas prices or investing in viable construction projects. 'Let's stop wasting California's hard-earned taxpayer dollars,' Strickland said. There is no known source for the billions of dollars that would be needed to complete the line. California High-Speed Rail Authority CEO Ian Choudri suggested in April that private investors could step in and fill the funding gap for the project that promised nonstop rail service between San Francisco and Los Angeles in under three hours. At the time, he acknowledged that even if funding is secured, it might take nearly two more decades to complete most of that segment. President Donald Trump — who canceled nearly $1 billion in federal dollars for the project in his first term — said in May that his administration will not continue to fund the line. 'That train is the worst cost overrun I've ever seen,' Trump told reporters at the time, calling it "totally out of control.' California Democratic U.S. Sens. Alex Padilla and Adam Schiff called the administration's announcement a 'devastating' blow for 21st century transportation and an effort to punish a heavily Democratic state that didn't support the Republican president in the election. 'High-speed rail is the future of transportation with the potential to bring customers to new businesses, businesses to new employees and to connect communities hundreds of miles away with affordable and faster transit,' they said in a joint statement.
Winnipeg Free Press
2 days ago
- Business
- Winnipeg Free Press
Trump administration signals it will slash funds for long-delayed California high-speed rail project
LOS ANGELES (AP) — The Trump administration signaled Wednesday that it intends to cut off federal funding for a long-delayed California high-speed rail project plagued by multibillion-dollar cost overruns, following the release of a scathing federal report that concluded there is 'no viable path' to complete even a partial section of the line. Voters first authorized $10 billion in borrowed funds in 2008 to cover about a third of the estimated cost, with a promise the train would be up and running by 2020. Five years beyond that deadline, no tracks have been laid and its estimated price tag has ballooned to over $100 billion. In a letter to the California High-Speed Rail Authority, which oversees the project, Federal Railroad Administration acting Administrator Drew Feeley wrote that what was envisioned as an 800-mile system connecting the state's major cities has been reduced to a blueprint for 'a 119-mile track to nowhere.' After a $4 billion federal investment, the California agency 'has conned the taxpayer … with no viable plan to deliver even that partial segment on time,' Feeley wrote. State officials defended what's known as the nation's largest infrastructure project and said they remain committed to construction, though it's not clear what funding would replace the federal support if it's withdrawn. Feeley noted the FRA could seek repayment of the federal funds but is not proposing to claw back those dollars at this time. Carol Dahmen, the state authority's chief of strategic communications, said in a statement that the federal conclusions are misguided and 'do not reflect the substantial progress made to deliver high-speed rail in California.' Dahmen noted that the majority of the funding for the line has been provided by the state and that Democratic Gov. Gavin Newsom's budget proposal would extend at least $1 billion a year for 20 years to complete an initial segment of the line. State officials are focused on a stretch connecting the Central Valley cities of Bakersfield and Merced, which is set to be operating by 2033. The state agency has about a month to formally respond to the FRA, after which the grants could be terminated. State Sen. Tony Strickland, a Republican from Huntington Beach who is vice chair of the Transportation Committee, said that 'commonsense has prevailed' and urged the Legislature's dominant Democrats to redirect the funds from the rail line to lowering gas prices or investing in viable construction projects. 'Let's stop wasting California's hard-earned taxpayer dollars,' Strickland said. Monday Mornings The latest local business news and a lookahead to the coming week. There is no known source for the billions of dollars that would be needed to complete the line. California High-Speed Rail Authority CEO Ian Choudri suggested in April that private investors could step in and fill the funding gap for the project that promised nonstop rail service between San Francisco and Los Angeles in under three hours. At the time, he acknowledged that even if funding is secured, it might take nearly two more decades to complete most of that segment. President Donald Trump — who canceled nearly $1 billion in federal dollars for the project in his first term — said in May that his administration will not continue to fund the line. 'That train is the worst cost overrun I've ever seen,' Trump told reporters at the time, calling it 'totally out of control.' California Democratic U.S. Sens. Alex Padilla and Adam Schiff called the administration's announcement a 'devastating' blow for 21st century transportation and an effort to punish a heavily Democratic state that didn't support the Republican president in the election. 'High-speed rail is the future of transportation with the potential to bring customers to new businesses, businesses to new employees and to connect communities hundreds of miles away with affordable and faster transit,' they said in a joint statement.
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.
San Francisco Chronicle
2 days ago
- Business
- San Francisco Chronicle
Trump administration signals it will slash funds for long-delayed California high-speed rail project
LOS ANGELES (AP) — The Trump administration signaled Wednesday that it intends to cut off federal funding for a long-delayed California high-speed rail project plagued by multibillion-dollar cost overruns, following the release of a scathing federal report that concluded there is 'no viable path' to complete even a partial section of the line. Voters first authorized $10 billion in borrowed funds in 2008 to cover about a third of the estimated cost, with a promise the train would be up and running by 2020. Five years beyond that deadline, no tracks have been laid and its estimated price tag has ballooned to over $100 billion. In a letter to the California High-Speed Rail Authority, which oversees the project, Federal Railroad Administration acting Administrator Drew Feeley wrote that what was envisioned as an 800-mile system connecting the state's major cities has been reduced to a blueprint for 'a 119-mile track to nowhere.' After a $4 billion federal investment, the California agency 'has conned the taxpayer ... with no viable plan to deliver even that partial segment on time,' Feeley wrote. State officials defended what's known as the nation's largest infrastructure project and said they remain committed to construction, though it's not clear what funding would replace the federal support if it's withdrawn. Feeley noted the FRA could seek repayment of the federal funds but is not proposing to claw back those dollars at this time. Carol Dahmen, the state authority's chief of strategic communications, said in a statement that the federal conclusions are misguided and 'do not reflect the substantial progress made to deliver high-speed rail in California.' Dahmen noted that the majority of the funding for the line has been provided by the state and that Democratic Gov. Gavin Newsom's budget proposal would extend at least $1 billion a year for 20 years to complete an initial segment of the line. State officials are focused on a stretch connecting the Central Valley cities of Bakersfield and Merced, which is set to be operating by 2033. The state agency has about a month to formally respond to the FRA, after which the grants could be terminated. State Sen. Tony Strickland, a Republican from Huntington Beach who is vice chair of the Transportation Committee, said that 'commonsense has prevailed" and urged the Legislature's dominant Democrats to redirect the funds from the rail line to lowering gas prices or investing in viable construction projects. 'Let's stop wasting California's hard-earned taxpayer dollars,' Strickland said. There is no known source for the billions of dollars that would be needed to complete the line. California High-Speed Rail Authority CEO Ian Choudri suggested in April that private investors could step in and fill the funding gap for the project that promised nonstop rail service between San Francisco and Los Angeles in under three hours. At the time, he acknowledged that even if funding is secured, it might take nearly two more decades to complete most of that segment. President Donald Trump said in May that his administration will not continue to fund the line. 'That train is the worst cost overrun I've ever seen,' Trump told reporters at the time, calling it "totally out of control.'
