{"id":29638,"date":"2025-03-22T14:48:35","date_gmt":"2025-03-22T21:48:35","guid":{"rendered":"https:\/\/essential.construction\/news\/can-usdot-kill-california-high-speed-rail\/"},"modified":"2025-03-22T14:48:35","modified_gmt":"2025-03-22T21:48:35","slug":"can-usdot-kill-california-high-speed-rail","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/can-usdot-kill-california-high-speed-rail\/","title":{"rendered":"Can USDOT kill California high-speed rail?"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">5 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1742566115\/news\/text_to_speech\/us-dot-investigate-california-high-speed-rail-authority_lvocmg.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p>In February, U.S. <a rel=\"nofollow noopener\" href=\"https:\/\/www.transportation.gov\/briefing-room\/us-transportation-secretary-duffy-announces-review-california-high-speed-rail-project\" target=\"_blank\">Transportation Secretary Sean Duffy launched a review<\/a> of the California High-Speed Rail Authority, which is building a portion of the proposed Los Angeles-to-San Francisco HSR project in the state\u2019s Central Valley. The review will determine whether the authority gets to keep about $4 billion in previously obligated federal grants.<\/p>\n<p>The project has come under criticism for many years due to delays and rising costs. In 2008, when California voters approved a $9.95 billion bond measure to start the project, the authority estimated the total cost of the LA-Bay Area line at $33 billion, and it promised that trains would be running by 2030. Last year, the authority\u2019s business plan estimated that a 171-mile section between Merced and Bakersfield, California, could be running sometime between 2030 and 2033 \u2014 at an <a rel=\"nofollow noopener\" href=\"https:\/\/hsr.ca.gov\/wp-content\/uploads\/2024\/05\/2024-Business-Plan-FINAL.pdf\" target=\"_blank\">estimated cost of $28.5 billion to $35.3 billion<\/a> just for that section.<\/p>\n<p>The Feb. 20 DOT press release on the review referenced a <a rel=\"nofollow noopener\" href=\"https:\/\/www.smartcitiesdive.com\/news\/california-high-speed-rail-project-oig-trump-shortfall-delay\/739548\/\" target=\"_blank\">California inspector general\u2019s Feb. 3 report<\/a>, which said the authority faces a $6.5 billion funding gap to complete the initial segment and that it is \u201cincreasingly unlikely\u201d the authority will be able to finish that portion by its target date of 2033.<\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"Side view of a man in blue suit standing next to an American flag.\" data-imagemodel=\"172042\" src=\"https:\/\/imgproxy.divecdn.com\/9vz8EYyu8my_STmvu9s3F-rXmliv2-Qp1oGckq4nr7k\/g:ce\/rs:fit:1600:0\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9HZXR0eUltYWdlcy0yMTkwNDM5MDA5LmpwZw==.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Transportation Secretary Sean Duffy\u00a0<\/p>\n<p>Kevin Dietsch via Getty Images<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p>\u201cThat is why 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,\u201d Duffy said in a statement. \u201cIf not, I will have to consider whether that money could be given to deserving infrastructure projects elsewhere in the United States.\u201d<\/p>\n<p>For the authority, this is deja vu. During Trump\u2019s first term, the <a rel=\"nofollow noopener\" href=\"https:\/\/railroads.dot.gov\/newsroom\/press-releases\/statement-federal-railroad-administration-termination-fy-10-grant-agreement\" target=\"_blank\">Federal Railroad Administration canceled a $928.6 million agreement<\/a> with it, alleging that the authority had \u201crepeatedly failed to comply with the terms of the FY10 Agreement and has failed to make reasonable progress on the Project.\u201d The Biden administration <a rel=\"nofollow noopener\" href=\"https:\/\/www.yahoo.com\/news\/biden-administration-restores-929-million-053458481.html\" target=\"_blank\">restored that funding<\/a> in 2021. The FRA in 2019 also sought the return of $2.5 billion in American Recovery and Reinvestment Act funds, which was not achieved.<\/p>\n<p>A DOT spokesperson told Smart Cities Dive that the current review includes the same FY10 $928.6 million grant and a <a rel=\"nofollow noopener\" href=\"https:\/\/hsr.ca.gov\/2023\/12\/05\/news-release-high-speed-rail-authority-to-receive-record-3-1-billion-from-biden-administration\/\" target=\"_blank\">$3.1 billion grant awarded in December 2023<\/a> under the Federal-State Partnership for Intercity Passenger Rail Program.<\/p>\n<p>In a Feb. 21 statement, the authority said it welcomes the investigation and the opportunity to work with its federal partners. \u201cWith multiple independent federal and state audits completed, every dollar is accounted for, and we stand by the progress and impact of this project,\u201d CEO Ian Choudri said.<\/p>\n<p>Reaction to the DOT\u2019s investigation came quickly. \u201cThe California High-Speed Rail (CAHSR) project is the most ambitious and innovative transportation project in the entire country,\u201d said Greg Regan and Shari Semelsberger, president and secretary-treasurer of the Transportation Trades Department, AFL-CIO, in a Feb. 20 statement. \u201cIt has created thousands of middle-class jobs, putting more than 14,600 Americans to work already, and been an economic boon to more than 800 small businesses that are involved in the project.\u201d<\/p>\n<p>Can the DOT claw back these already-awarded funds? The terms of the grant agreement and the authority\u2019s compliance with those terms will largely determine that, said Joshua Schnell, a partner at the Cordatis law firm, who represents grant recipients and federal contractors as head of the firm\u2019s litigation practice. If the investigation finds a violation of either the grant agreement or the grant regulations, or indications of fraud or abuse, that could be cause for clawing back those funds, he said.<\/p>\n<p>The authority is not totally reliant on federal grants. Referencing the state inspector general\u2019s report, a spokesperson said that of the approximately $13 billion spent on the project, $10.5 billion came from the state.<\/p>\n<p>Those funds come mainly from California\u2019s emissions cap-and-trade program. The program sets limits on emissions and issues a shrinking number of allowances each year under that cap. Emitters the program covers must have an allowance for each ton of their carbon dioxide emissions; they can <a rel=\"nofollow noopener\" href=\"https:\/\/ww2.arb.ca.gov\/news\/california-and-quebec-release-summary-results-42nd-joint-cap-and-trade-allowance-auction\" target=\"_blank\">buy and sell allowances<\/a> at an auction depending on their needs, with some of the proceeds going to the state\u2019s Greenhouse Gas Reduction Fund.<\/p>\n<section class=\"storylines-carousel-wrapper hide-small show-large\" id=\"desktop-carousel\"\/>\n<p>The fund dedicates 25% of its annual revenue to high-speed rail. The authority projects revenue of $26.7 billion to $29.7 billion from GGRF revenues of $750 million to $1.25 billion per year through 2030, according to its <a rel=\"nofollow noopener\" href=\"https:\/\/hsr.ca.gov\/wp-content\/uploads\/2025\/03\/2025-Project-Update-Report-FINAL-030125-A11Y.pdf\" target=\"_blank\">2025 project update<\/a>.<\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/us-dot-investigate-california-high-speed-rail-authority\/743166\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 5 min This audio is auto-generated. Please let us know if you have feedback. In &#8230; <a title=\"Can USDOT kill California high-speed rail?\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/can-usdot-kill-california-high-speed-rail\/\" aria-label=\"Read more about Can USDOT kill California high-speed rail?\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-29638","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/29638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=29638"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/29638\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=29638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=29638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=29638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}