Trump Administration Declares California High-Speed Rail Project Lacks Feasible Future Following FRA Report

According to a recent report from the Federal Railroad Administration (FRA), California’s ambitious high-speed rail initiative is facing meaningful hurdles, with officials expressing doubts about its future viability.

This compliance report, released on June 5 and commissioned by Transportation Secretary Sean Duffy earlier in February, aimed to assess whether the federal government should proceed with approximately $4 billion in funding for the initial segment connecting Merced and Bakersfield of the larger San Francisco to Los Angeles route.

The U.S. Department of Transportation shared insights on June 5, stating that under Secretary Duffy’s guidance, FRA undertook a thorough examination of how well the California High-Speed Rail Authority (CHSRA) adhered to federal grant agreements tied to this considerable funding.Their investigation included outreach to state oversight bodies, site visits, risk assessments, discussions with CHSRA representatives, and an extensive review of thousands of documents.

The comprehensive 310-page document highlights nine critical findings as outlined by USDOT:

• The CHSRA has issued numerous change orders due to contractor costs stemming from project delays and is highly likely to issue more soon;
• A deadline for finalizing rolling stock procurement has already been missed;
• A staggering $7 billion funding shortfall exists for completing the Early Operating section currently under construction in Central Valley without a solid plan for securing additional funds;
• No feasible strategy is in place for finishing this section by 2033 as promised under federal grants;
• The authority depends heavily on unstable non-federal funding sources that pose considerable risks;
• Lack of time and resources hampers efforts to electrify this section by 2033;
• The budget contingency fails to adequately address expected contractor delay claims;
• An overestimation exists regarding ridership projections for this segment;
• The capacity needed for timely delivery by 2033 is lacking within CHSRA.

Drew Feely, acting FRA Administrator, emphasized in his letter that it’s crucial for FRA to manage taxpayer money responsibly. He stated that continuing financial support towards what he described as a “Sisyphean endeavor” would not be justifiable given its current status compared to promises made back in 2008.