U.S. pulls $175 million in funding from California high-speed rail projects

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California Construction News staff writer

U.S. Transportation Secretary Sean P. Duffy announced today that the Federal Railroad Administration (FRA) has withdrawn more than $175 million in funding for four projects tied to California’s high-speed rail initiative, calling the state’s effort a “boondoggle” and a waste of taxpayer dollars.

“In twenty years, California has not been able to lay a single track of high-speed rail,” Duffy said in a statement. “Joe Biden and Pete Buttigieg didn’t care about these failures and dumped hundreds of millions of dollars into the state’s wish list of related fantasy projects. The waste ends here. As of today, the American people are done investing in California’s failed experiment.”

The move follows FRA’s decision in July to terminate $4 billion in grant funding to the California High-Speed Rail Authority (CHSRA), citing a 315-page report that concluded the agency would not complete its Merced-to-Bakersfield line by 2033.

According to the Transportation Department, roughly $15 billion has already been spent on the project, which carries a projected total cost of $135 billion. Duffy’s office argued the money could have provided every San Francisco and Los Angeles resident with nearly 200 roundtrip flights between the two cities.

The four projects losing federal support include:

  • Le Grand Overcrossing Project on the Merced Extension (CHSRA; $89.6 million)

  • Southern San Jose Grade Separations (Monterey Road) (City of San Jose; $7.5 million)

  • DTX Final Design for Track and Rail Systems Project (Transbay Joint Powers Authority; $24.7 million)

  • Madera High-Speed Rail Station Project (California Department of Transportation; $54.5 million)

In addition to pulling the money, Duffy has ordered the FRA to review all existing grants tied to the high-speed rail project.

Supporters of the state’s high-speed rail effort have long argued it would create jobs, cut carbon emissions and provide a fast alternative to flying or driving between California’s major cities. But critics, including Duffy, have pointed to escalating costs, missed deadlines and shifting project goals as proof that the effort is failing.

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