Brady PieperThe U.S. Department of Transportation is reviewing funding for a high-speed rail project in California connecting San Francisco and Los Angeles.
The department has notified the California High-Speed Rail Authority (CHSRA) that it may not be in compliance with standards for two federal grants delivered to the estimated $106 billion California High-Speed Rail Project.
The DOT’s Federal Railroad Administration (FRA) will conduct the review toevaluate whether the federal government should deliver roughly $4 billion in committed taxpayer funding to CHSRA for a portion of the massive rail project.
“I am directing my staff to review and determine whether the CHSRA has followed through on the commitments it made to receive billions of dollars in federal funding,” U.S. Transportation Secretary Sean P. Duffy said. “If not, I will have to consider whether that money could be given to deserving infrastructure projects elsewhere in the United States.”
The California High-Speed Rail Project is designed to connect major and small communities through the state with fast, reliable and sustainable public transit service. While the project was originally estimated to cost approximately $33 billion, the project’s price has nearly tripled since its inception and completion dates have been delayed, prompting the DOT to act.
A critical component of the rail project is the construction of the rail corridor through Merced and Bakersfield, which faces an estimated $6.5 billion funding gap, according to the California High-Speed Rail Office of the Inspector General.
This high-speed rail segment between Merced and Bakersfield, outlined in the recently approved State Rail Plan, highlights the California Department of Transportation’s mid-term goals for state rail systems.
Now under federal review, the FRA will investigate CHSRA’s compliance with two grants the agency received from two federal grant programs: the Federal-State Partnership for Intercity
Passenger Rail program and the High-Speed Rail Corridors and Intercity Passenger Rail Service – Capital Assistance Grants program.
The two grant awards, listed under Federal Award Identification Numbers FR-HSR-0118-12 and 69A36524521070FSPCA, awarded about $928 million and $2.4 billion in federal funding to the project, respectively.
FRA’s compliance review will seek additional information to assess whether CHSRA is meeting the terms of the funding agreements. This may include site visits and the examination of project activities, financial records and other relevant documents
Officials estimate that existing funding gaps, delays and cost overruns will likely push the rail project beyond its original timeline, which was expected to be complete by 2033.
Despite setbacks, DOT officials note CHSRA’s “impressive work” on the Brightline West high-speed rail project, connecting Las Vegas to Southern California’s Apple Valley, Hesperia and Rancho Cucamonga communities. Working in conjunction with the Nevada Department of Transportation, the rail project entered into a $3 billion agreement with the FRA to streamline this multistate high-speed mobility initiative.
Work is expected to pause on the project as the FRA conducts its investigation into CHSRA and determines the federal government’s role on the Merced-to-Bakersfield corridor. The FRA chief counsel’s letter to CHSRA is available here.
Photo Courtesy
Fresno Station Rendering
California High-Speed Rail Authority via Wikimedia Commons
