FRESNO, Calif. — The U.S. Department of Transportation says it plans to revoke $4 billion in federal funding for California’s high-speed rail project, citing what it calls “no viable path forward.”
The announcement came Wednesday in a 310-page report that outlines concerns about the project’s ballooning costs and delays, claiming the California High-Speed Rail Authority does not have the capacity to deliver the early operating segment by 2033 as planned. The DOT gave California 37 days to respond and correct the issues before the funding termination becomes final.
Voters initially signed off on California’s ambitious plans for a bullet train in 2008, with promises to connect the greater Los Angeles area to the Bay Area by 2033. It was originally expected to cost $33 billion, but now, estimates range between $89 billion and $128 billion.
Construction began in the Central Valley in 2015 but has incrementally progressed.
“Fifteen years, $16 billion, not one high-speed rail track has been laid. the waste, the abuse and the mismanagement of this project has called for this investigation,” Transportation Secretary Sean Duffy said in an online video.
Transit policy experts acknowledge the project faces major financial hurdles. Sebastian Petty, a senior advisor at SPUR, said the project is struggling to deliver on promises made to voters, largely due to limited funding.
“It puts pressure on what are already fairly scarce state dollars for transportation. So if, California is going to continue to invest heavily in the high-speed rail system, it puts pressure on the availability of that funding for transit operations uses potentially for other transit capital projects in the Bay Area,” Petty said.
Supporters, including state lawmakers, argue the delays are frustrating – but cutting federal funding would worsen the situation. Gov. Gavin Newsom has previously vowed to fight back, insisting the project will move forward and federal dollars will be recovered.
“California has been a leader in realizing the vision of high-speed rail to meet the needs of working families with respect for consumers, labor and the environment,” Speaker Emerita Nancy Pelosi, D-San Francisco, said in a statement. “It is unfortunate that the Secretary has misrepresented the facts.”
The California High-Speed Rail Authority emphasized that most of the project’s funding comes from the state. Under the governor’s current budget proposal, the rail effort would receive $1 billion annually over the next 20 years to complete its initial operating segment.
“We remain firmly committed to completing the nation’s first true high-speed rail system connecting the major population centers in the state,” a spokesperson for CHSRA said. “The Authority will fully address and correct the record in our formal response to the FRA’s notice.”
