Latest news with #CaliforniaHigh-SpeedRail
Yahoo
17-07-2025
- Politics
- Yahoo
California high-speed rail has federal funding cancelled
The Trump administration and its Transportation Secretary Sean Duffy have scrapped billions of dollars in federal funding for the California High-Speed Rail Authority (CHSRA). While this has been presented as a financial decision, Trump's words to describe the Governor of California, a political opponent, suggested it is part of his ongoing campaign against the largest and richest state in the US. The cut is worth at least $4bn, but while this is only a small part of the California High-Speed Rail project's overall budget, it could make the continuation of the project impossible. The cancelled funding allocations are known as the FSP Agreement and the FY10 Agreement. The project was on track to cost as much as $128 billion, significantly higher than its original estimate of $33 billion. A key aim of the project was 'creating the greenest infrastructure project in the nation, both in its operations and its construction.' The Department of Transportation described the project as 'California's High Speed Rail Boondoggle'. Boondoggle is a US term used to describe wasteful or fraudulent spending on capital projects. Its statement also echoes Trump's previous assertions that a new rail route is unneeded because roads and aviation routes exist. 'The $135 billion projected total cost of the project could buy every San Francisco and LA resident nearly 200 roundtrip flights between the cities,' it said. Transportation Secretary Sean Duffy put it bluntly in his own statement: 'It's time for this boondoggle to die.' He then extended the political attack on the California state administration, and Gavin Newsom, who has been vocal in his opposition to the actions of the Trump federal government. 'This is California's fault. Governor Newsom and the complicit Democrats have enabled this waste for years. Federal dollars are not a blank check – they come with a promise to deliver results. After over a decade of failures, CHSRA's mismanagement and incompetence has proven it cannot build its train to nowhere on time or on budget,' Duffy asserted. The cut followed a review of the federal funding allocated to the CHSRA, which found the Authority 'cannot meet its obligations under the grant agreement'. Duffy said further reviews into further funding were now underway. The decision, which was foreshadowed by Trump and Duffy's words over the past week, was met with anger by Californian officials. CHSRA CEO Ian Choudri said: 'Cancelling these grants without cause isn't just wrong — it's illegal.' 'These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025. America's only high-speed rail project underway is fast approaching the track-laying phase, with 171 miles under active construction and design, 15,500 jobs created, and more than 50 major structures completed. This is no time for Washington to walk away on America's transportation future,' Choudri added. Governor Newsom said the funding reversal would benefit China (which has already built more than 20,000 miles of high-speed railways) instead of the US, and the California State government would challenge the decision in court. 'Trump wants to hand China the future and abandon the Central Valley. We won't let him. With projects like the Texas high-speed rail failing to take off, we are miles ahead of others. We're now in the track-laying phase and building America's only high-speed rail. California is putting all options on the table to fight this illegal action,' Newsom said. Aside from the party politics, the DoT and Federal Railroad Administration under Secretary Duffy cited several reasons for stopping the funding. These centre around the finding that CHSRA will 'not be able to deliver the operation of a Merced-to-Bakersfield corridor by the end of 2033'. The full decision letter can be found here. The reasons given include: 'CHSRA has already missed its deadline for finalizing its rolling stock procurement. CHSRA has at least a $7 billion funding gap to complete the EOS, with no credible plan to secure additional funds. CHSRA does not have a viable path to complete the EOS by 2033 per its commitment in the FY10 Agreement and the FSP Agreement. CHSRA relies on volatile non-federal funding sources, which present significant project risk. CHSRA lacks time and money to electrify the EOS by 2033. CHSRA's budget contingency is inadequate to cover anticipated contractor delay claims.' A full response to these points was delivered by the CHSRA in a letter, which can be read here. While not specifically mentioned in the decision document, the lack of laid track has become a key talking point in Duffy and Trump's public communication on the project. Though it is true that no actual track has yet been laid for the high-speed line, Choudri said this is due to the significant infrastructure like bridges, viaducts, and underpasses that must be built first, many of which have been completed. 'I must also take this opportunity to dispute, in the strongest possible terms, the misleading claim that the Authority has made 'minimal progress to advance construction,'' wrote Choudri on 12 July. 'The Authority's work has already reshaped the Central Valley. We have built many of the viaducts, overpasses, and underpasses on which the first 119 miles of high-speed rail track will run.' "California high-speed rail has federal funding cancelled" was originally created and published by Railway Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. 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Newsweek
08-07-2025
- Business
- Newsweek
California High-Speed Rail Reveals New Plan To Save Project
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The California High-Speed Rail project, long beset by rising costs, delays, and political conflict, revealed a new plan led by its recently appointed CEO, Ian Choudri, that relies on $1 billion in annual state funding combined with private capital to help keep the project afloat. Choudri, who took charge of the High-Speed Rail Authority in August, explained during an interview at a transportation conference in San Francisco, according to the San Francisco Chronicle, emphasizing the potential of public-private partnerships to move the rail initiative forward. Why It Matters While the construction of the California high-speed rail advances across the Central Valley, it has faced growing doubts from the federal government. President Donald Trump has criticized the project, previously calling it a "waste" and a "green disaster." Transportation Secretary Sean Duffy has also expressed doubts, citing concerns over the escalating costs and extended timeline, both of which have exceeded initial projections. An aerial image shows construction workers building the Hanford Viaduct over Highway 198 as part of the California High Speed Rail (CAHSR) transit project in Hanford, California on February 12, 2025. An aerial image shows construction workers building the Hanford Viaduct over Highway 198 as part of the California High Speed Rail (CAHSR) transit project in Hanford, California on February 12, 2025. Patrick T. Fallon/AFP via Getty Images What To Know Choudri's proposal centers on securing $1 billion annually from the state's climate emissions program, a fund typically allocated to clean energy initiatives such as public transit and electric vehicles, the Chronicle reported. "We are looking at state-level commitments so that we can bring private equity partners in," Choudri said in San Francisco while attending the American Public Transportation Association conference. The approach aims to establish a stable base of government support that can attract private investors to finance the remaining costs as the project advances. Industry partners see several revenue opportunities, including ticket sales and commercializing long corridors of railway rights-of-way. "There are significant ways to monetize (and) commercialize long linear rights of way," said Sia Kusha, senior vice president of Plenary Americas, which has experience in public-private infrastructure projects. Another option presented by former chair of the U.S. High-Speed Rail Association Dan Richard was the possibility of auctioning operational rights for the Central Valley segment after attracting an initial customer base—a strategy that has precedent in Japan's Shinkansen rail privatization, the Chronicle reported. What People Are Saying U.S. High Speed Rail Association former chair Dan Richard said, according to the San Francisco Chronicle: "There's always been a desire to have the private sector involved at the right time, when the risk is understood." In a recent statement, the California High-Speed Rail Authority said: "Construction progresses every day on the California high-speed rail project. In addition to continued progress across the Central Valley, the Authority also announced the completion of four grade separations at Fargo Avenue and Whitley Avenue in Kings County, and at Belmont Avenue and Central Avenue in Fresno County... "Since the start of high-speed rail construction, the project has created more than 15,300 good paying construction jobs, a majority going to residents of the Central Valley. As many as 1,700 workers are dispatched to a high-speed rail construction site daily." What Happens Next The rail project is moving into its tracklaying phase this year, following the completion of most of its central infrastructure, Newsweek reported previously.
Indian Express
29-06-2025
- Business
- Indian Express
Top 10 upcoming infrastructure projects in US: High-speed rail to JFK airport expansion
The United States is undertaking some of its most ambitious infrastructure projects in 2025. With funding from federal legislation such as the 2021 Infrastructure Investment and Jobs Act and the CHIPS and Science Act, the construction sector is being reshaped across key areas rail, energy, airports, and transit systems. According to Forbes, public sector spending is growing steadily at 5–6 per cent a year, while private non-residential projects like chip factories and data centres are leading in growth. Blackridge Research notes that construction activity continues to be driven by large-scale megaprojects aimed at improving mobility, sustainability, and economic resilience. Sector: Rail Cost: $135 billion Location: California This rail project will span more than 800 miles, connecting key cities including San Francisco, Los Angeles and San Diego. Once complete, it will reduce travel time between LA and San Francisco from 10 hours to 3. The project has created nearly 15,000 jobs and is being funded by both federal and private sources. 'The California High-Speed Rail is the most ambitious transportation project in the country,' Blackridge showing . 'Its full impact will be seen in reduced travel time and emissions.' Sector: Public Transit Cost: $54 billion Location: Washington (Seattle–Tacoma) ST3 will expand the Seattle area's light rail system by 62 miles and add 37 new stations. The goal is to serve 600,000 daily passengers by 2046. The plan also includes bus rapid transit and commuter rail improvements. 'It is a long-term solution to urban congestion and regional connectivity,' according to Blackridge Research. Sector: Public Transit Cost: $42.9 billion Location: Los Angeles, California This initiative aims to complete 28 major transit projects before the 2028 Olympics. While 20 are on track, funding is needed for the remaining ones. The projects include light rail lines, highway upgrades, and new bus corridors. Sector: Rail Cost: $41.6 billion Location: Texas (Dallas–Houston) This privately led high-speed rail line aims to cut travel time between Dallas and Houston to 90 minutes. The trains will use Japanese Shinkansen technology. However, the project faced a setback when a federal grant was withdrawn in 2025. 'This could be a game-changer for intercity travel in the South,' Blackridge noted. Sector: Urban Development Cost: $25 billion Location: New York City Hudson Yards is the largest private real estate project in US history. Built above active rail yards, it includes offices, homes, parks, and shops. The development contributes over $19 billion a year to NYC's economy and employs more than 50,000 people. Sector: Aviation Cost: $19 billion Location: New York This project includes new terminals, expanded runways, and a central transportation hub. The New Terminal One alone will cover 2.6 million square feet and handle international flights. The aim is to make JFK a world-class airport by 2030. JFK is being transformed to meet the travel needs of the future. Sector: Rail Cost: $16.1 billion Location: New York / New Jersey The Gateway Program includes building two new tunnels under the Hudson River and rehabilitating the existing ones. Work started in 2023 and includes utility relocation and concrete casing work at Hudson Yards. The project will ease pressure on one of the busiest rail corridors in the country. Sector: Rail Cost: $12 billion Location: California–Nevada This new line will link Las Vegas and Southern California along a 218-mile route. Trains will run at high speeds on dedicated tracks along Interstate 15. The project is expected to be completed by the end of 2028. Sector: Renewable Energy Cost: $11 billion Location: New Mexico–Arizona This clean energy project will generate over 3,500 MW of wind power in New Mexico and deliver it to Arizona through a 550-mile transmission line. It is the largest renewable project in US history and could generate $20.5 billion in economic benefits. Sector: Public Transit Cost: $9.5 billion Location: Los Angeles, California The D Line extension will bring subway service from Koreatown to Westwood. The project adds seven stations in three phases and is expected to open fully by 2027. It is funded by local sales tax and state/federal support. The US infrastructure landscape in 2025 reflects a shift towards sustainable transport, cleaner energy, and improved urban design. These top 10 projects, backed by both public and private investments, represent long-term economic planning and changing mobility patterns.
The Hill
29-06-2025
- Business
- The Hill
Protecting small-town America: Why high-speed rail is the wrong track for the US
High-speed rail has captured the public imagination, becoming a key benchmark for comparison between China and the U.S.. Observers point to its widespread ubiquity in the former and absence in the latter as a reflection of broader developmental trajectories. The Shanghai Maglev (short for 'magnetic levitation') train, with speeds of up to 268 mph, is one of many 'super-trains' seemingly backing the claim that China is 'living in the future' in 2025. However, the topic may turn out to be a case of comparing apples to oranges, due to structural differences in governance, geography and transportation culture. Building a high-speed transportation network — a large-scale infrastructure project requiring massive federal investment — would pose a significant challenge to the U.S. economy. The California High-Speed Rail currently underway, for instance, was predicted to require $33 billion in funding but has now reached an estimate of $113 billion. Among the many repercussions soon to be realized, however, one stands out as particularly overlooked. Such networks of high-speed rail would be disastrous to a part of America that has been driving the U.S. economy for many years, perhaps illustrated best in movies and television. Think of the Double R Diner from the show 'Twin Peaks,' or the gas station stops in the Coen brothers' film 'No Country for Old Men.' Depicted in these scenes were 'pass-through towns' or 'rest-and-stop towns' — small communities between destination cities that stay alive because travelers stop at local diners, gas stations and similar mom-and-pop businesses. Small towns and communities such as Seligman, Ariz.; Little America, Wyo.; and Needles, Calif., among others, have built their economies around providing such services. Unlike China, where there is a more concentrated settlement pattern, the U.S. has many such towns scattered across relatively remote areas, often encountered only during long drives. Implementing high-speed rail nationwide would be detrimental to these towns, in turn undermining key parts of the overall American economy. Such large-scale infrastructure projects disrupt local autonomy and free-market activity. As has already been reported in China, high-speed rail networks often produce what is called the 'siphon effect,' where the allure of large urban cities absorbs a great deal of investment and development opportunities away from smaller communities. This effect would be particularly damaging for small towns across the U.S. that have in recent years been in an economically fragile state. Many American social media influencers have disregarded this detail, and their pleas for the U.S. to join the hype have been echoed by policymakers and urban planners who have tried for many years to establish high-speed rail. There is a fundamental conflict between the notion of connecting the whole of the U.S. with high-speed networks and the American tradition of decentralized infrastructure. The success of the Eisenhower Interstate System was not that it connected major cities but because it empowered Americans to traverse the entire country, aiding local economies along the way. The Eisenhower Interstate System also allowed Americans to live far away from city centers and helped cement America's car culture. The vision for a high-speed rail within the U.S. imports the centralized planning of a nation with drastically different values and geography, fundamentally misunderstanding what has contributed to the historical success of the Eisenhower Interstate System. Furthermore, the financial logic of high-speed rail networks simply does not hold up, as ongoing projects turned into what many city planners now describe as logistical and financial 'nightmares.' Citizens Against Government Waste pointed to the mismanagement of California's high-speed rail, which has faced rising costs every year since the project began. While the claim that it would cost $33 billion was never feasible, the current $113 billion estimate is already 23 percent higher than the $81.4 billion that organization had originally estimated it would actually cost. It cites the 'opportunistic contractors' that have exploited the lack of foresight involved in the project, 88 of which were booted by Gov. Gavin Newsom far 'too late.' A misreading of the American public's needs has led policymakers to surrender to hyped-up benchmarks that undermine the traditions and geography of the U.S., as well as reasons behind previous successes in infrastructure. Thus, it would be wise to think twice before entering the super-train craze that China has spearheaded, re-evaluating ongoing projects and reflecting on the longstanding national value of decentralization. Rinzen Widjaja is a writer, political commentator and television guest speaker based in Melbourne, Australia, and a student of economics at the University of Melbourne.
Business Insider
27-06-2025
- Business
- Business Insider
Why 99.5% of big projects fail
Dan Gardner is the coauthor of "How Big Things Get Done," a book that explores why so many billion-dollar projects, from nuclear power plants to Olympic Games, go wrong and how some manage to succeed. Drawing on data from over 16,000 megaprojects, Gardner and his coauthor Bent Flyvbjerg reveal the startling truth: Only 0.5% of big projects are delivered on time, on budget, and with the promised results. Business Insider interviewed Dan Gardner to learn about some of the world's most high-profile projects, like the Sydney Opera House, which soared 1,400% over budget, and the troubled California High-Speed Rail, which is expected to cost over $100 billion and hasn't moved any passengers yet. He also spotlights the rare successes, like the Empire State Building and the Hoover Dam, to show what's possible when projects are built on smart planning, strong leadership, and modular thinking.
