California High-Speed Rail: $175M Funding Cut, Project Future Uncertain

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Introduction

The Federal Railroad Administration (FRA) has cancelled $175 million in federal funding for four projects associated with California’s high-speed rail, following the earlier cancellation of $4 billion. U.S. Transportation Secretary Sean P. Duffy criticized the project, citing mismanagement and escalating costs.

Funding Withdrawal

The U.S. Department of Transportation announced the FRA’s withdrawal of funding from four projects linked to California’s high-speed rail scheme. This action removes an additional $175 million in federal funding, adding to the $4 billion previously cancelled by the Biden administration.

Project Criticisms

U.S. Transportation Secretary Sean P. Duffy criticized the project, stating that “In twenty years, California has not been able to lay a single track of high-speed rail.” He further stated, “The waste ends here. As of today, the American people are done investing in California’s failed experiment. Instead, my Department will focus on making travel great again by investing in well-managed projects that can make projects like high-speed rail a reality.”

Affected Projects and Costs

The four projects losing federal funding are the Le Grand Overcrossing on the Merced extension, worth $89.6 million; Southern San Jose grade separations on Monterey Road, $7.5 million; the Downtown Extension final design for track and rail systems by the Transbay Joint Powers Authority, $24.7 million; and the Madera High-Speed Rail Station, $54.5 million. Approximately $15 billion has already been spent, with the projected cost now standing at $135 billion.

Project Background and Future Plans

In July, the Department terminated $4 billion in FRA grant funding to the California High-Speed Rail Authority (CHSRA). California Governor Gavin Newsom has stated that the project will continue despite the federal cuts. The state has launched legal action against the Trump administration’s earlier withdrawal of funds and plans to use its cap-and-trade programme, expected to generate $1 billion annually, to finance construction. Approved by voters in 2008, the high-speed line between Los Angeles and San Francisco was initially estimated at $33 billion and a 2020 completion. The Central Valley section is currently under construction and may open in the 2030s, with the full system to follow later.

Conclusion

The FRA has cancelled $175 million in federal funding for several projects linked to California’s high-speed rail. This decision follows the earlier cancellation of $4 billion in funding. Despite these actions, the state plans to proceed with the project using alternative funding sources.

Company Summary

Transbay Joint Powers Authority: The Transbay Joint Powers Authority is mentioned in the article in relation to the Downtown Extension final design for track and rail systems.

California High-Speed Rail Authority (CHSRA): The California High-Speed Rail Authority is the entity that had $4 billion in FRA grant funding terminated in July.

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