Latest news with #Feeley
5 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they remain committed to construction, though it's not clear what funding would replace the federal support if it's withdrawn.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
5 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
5 days ago
- Politics
- Yahoo
We gave $7B to California for a high-speed rail line and no track was ever laid: ‘Trains to nowhere'
The federal government handed $7 billion to California to build a high-speed rail line, but the Golden State never laid a single foot of track, according to a new report. This prompted Transportation Secretary Sean Duffy to threaten that he may remove federal grants to the state's High-Speed Rail Authority (CHSRA). The 310-page report states that there were numerous missed deadlines and budget overruns. Duffy handed the authority a deadline of July 11 to respond or risk losing approximately $4 billion in grants. 'I promised the American people we would be good stewards of their hard-earned tax dollars,' 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.' '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 added. 'Our country deserves high-speed rail that makes us proud – not boondoogle [sic] trains to nowhere.' The rail line was passed as a ballot initiative in 2008 and was supposed to run for 800 miles, connecting Sacramento and San Diego. The budget was $33 billion and the work was supposed to have been completed by 2020. However, in 2019, California Gov. Gavin Newsom said there was nowhere to go after costs had reached $77.3 billion and the rail line had been restricted to run from Merced to Bakersfield. Subsequently, officials with the CHSRA applied for grants totaling $8 billion from the funds passed in former President Joe Biden's infrastructure legislation to finish that shorter rail line. However, in a letter sent Wednesday, the Federal Railroad Administration's acting administrator, Drew Feeley, said that nine months after the first batch of funding was sent in September last year, the authority had crossed a deadline to buy rail cars. Feeley went through other procurement problems and tallied up as much as $1.6 billion in misspent funding because of changed orders. In the end, it's considered unlikely that the project will be finished by its new deadline of 2033. 'CHSRA relied on the false hope of an unending spigot of Federal taxpayer dollars,' Feeley wrote. 'In essence, CHSRA has conned the taxpayer out of its $4 billion investment, with no viable plan to deliver even that partial segment on time.' The California rail authority inspector general found in February that there was a budget shortfall of $7 billion. The federal government had handed the project $6.9 billion since 2010. Speaking to reporters last month, Newsom noted that a high-speed rail project connecting Dallas and Houston had been abandoned. 'You can see the progress we've actually made,' he said at the time. 'We're now on the other side of the environmental reviews; we're on the other side of the land acquisition.' But a spokesperson for the rail authority said the findings of the four-month review were 'misguided' and didn't reflect the project. 'The Authority will fully address and correct the record in our formal response,' a spokesperson said, according to The Los Angeles Times. 'We remain firmly committed to completing the nation's first true high-speed rail system connecting the major population centers in the state.'
San Francisco Chronicle
5 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.'
Yahoo
5 days ago
- Business
- Yahoo
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.'
