California Got Nearly $7B From Feds For High-Speed Rail — But Never Laid Any Track, Bombshell Report Shows
Transportation Secretary Sean Duffy issued a stern ultimatum on Wednesday to California’s High-Speed Rail Authority, warning that the federal government may revoke billions in grant money after the agency spent close to $7 billion over fifteen years without constructing a single inch of track.
A comprehensive 310-page review outlined numerous missed milestones and runaway costs. Duffy gave the state agency until July 11 to justify its performance or risk losing nearly $4 billion in federal funding. “This report exposes a cold, hard truth: CHSRA has no viable path to complete this project on time or on budget,” he stated.
Voters originally approved the project in 2008, envisioning an 800-mile high-speed train system that would link Sacramento to San Diego. The price tag was set at $33 billion, with a projected completion date of 2020.
But by 2019, the project’s scope had shrunk dramatically. California Governor Gavin Newsom admitted there was no feasible way forward, as the estimated cost surged to $77.3 billion. The plan was reduced to a 171-mile corridor between Merced and Bakersfield.
In an attempt to salvage the endeavor, CHSRA later submitted an $8 billion grant request under President Joe Biden’s 2021 infrastructure initiative to fund the scaled-down Central Valley segment.
However, according to a letter sent Wednesday by Federal Railroad Administration acting administrator Drew Feeley, the rail authority missed a key September 2024 deadline to procure rail cars. He also flagged additional problems with contracting and noted as much as $1.6 billion may have been misallocated due to change orders — casting serious doubt on whether the project can be completed by the revised 2033 target.
Earlier this year, in February, an internal audit revealed a $7 billion funding gap — roughly equal to the $6.9 billion the federal government had already allocated since 2010.
That same month, Duffy initiated a formal review of the agency’s use of federal funds.
“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,” Duffy declared in a public statement. “Our country deserves high-speed rail that makes us proud — not boondoggle trains to nowhere.”
Governor Newsom, speaking last month, defended the progress made by the rail authority. He noted that Texas had also scrapped its own planned high-speed rail project between Dallas and Houston.
“You can see the progress we’ve actually made,” Newsom said. “We’re now on the other side of the environmental reviews; we’re on the other side of the land acquisition.”
{Matzav.com}