Latest news with #Obama-era
Newsweek
a day ago
- Business
- Newsweek
Texas High-Speed Rail Project Future Uncertain After Latest Setback
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 proposed Texas Central high-speed rail project suffered a fresh blow this week when Spanish rail operator Renfe decided to liquidate its U.S. subsidiary—Renfe of America—and write off its entire investment, as reported by Trenvista and El Economista. The announcement followed recent setbacks, including the Trump administration's withdrawal of a $63.9 million federal grant and the quiet exit of Japanese investors from the $40 billion venture linking Dallas and Houston. Renfe's withdrawal not only removed a leading international operator from the project but also highlighted the financial instability facing what is one of the nation's most ambitious transportation undertakings. Newsweek reached out to Renfe and Texas Central for comment on Friday via email outside of regular office hours. Why It Matters The Texas Central high-speed rail line, envisioned as a transformative connection between Houston and Dallas, had promised to revolutionize mobility in the region and establish the United States as a player in high-speed rail. Its struggles bear implications for federal infrastructure policy, private-public investment risks, and the credibility of large-scale rail projects nationwide. A range of high-speed rail projects has been proposed across the U.S. In May, former Obama-era Transportation Secretary Ray LaHood told Newsweek that he believed one successful high-speed line could unlock other projects across the country. What To Know Map of the proposed Dallas to Houston high-speed rail line produced by Texas Central. Map of the proposed Dallas to Houston high-speed rail line produced by Texas Central. Texas Central Renfe Liquidates Its U.S. Subsidiary After Heavy Losses Renfe, Spain's state railway operator, dissolved Renfe of America after recognizing accumulated losses of €4.5 million (approximately $5 million) and writing down all investment in the Texas Central project, as documented in its 2024 accounts. This move followed more than five years of unsuccessful efforts to establish U.S. high-speed rail operations as a strategic partner for Texas Central. Renfe originally anticipated up to €5.3 billion in revenues through 2042, having won a contract to operate the proposed 386-kilometer Dallas–Houston line. However, the company declared the value of its U.S. investment at zero and publicly abandoned any hope of recovering debts dating back to 2019. Federal Funding Pulled After Cost Overruns and Delays The U.S. Department of Transportation withdrew a $63.9 million grant in April previously allocated to Amtrak for Texas Central, labeling the project "a risky venture for the taxpayer." Texas Central, which initially had a $10 billion budget estimate, saw its spending expectations balloon to over $40 billion, according to reports from the Reason Foundation and multiple financial outlets. Key Investors and Stakeholders Exit Renfe's departure followed the prior exit of major Japanese investors, who reportedly lost over $272 million in the venture. Fort Worth-based Kleinheinz Capital Partners took over as lead investor, acquiring significant stakes from Japanese shareholders. Texas Central has acquired only about 25 percent of the land needed for the line, with outstanding construction permits and further land acquisition unresolved. The current combination of lost foreign expertise and evaporating funds has increased scrutiny from the Texas legislature, which is now demanding enhanced transparency and annual financial disclosures from project leaders. Possible Silver Lining in Private Equity Approaches Some industry observers suggested that private equity-led models, similar to those seen in Florida and Nevada, might offer a path forward. Robert Pearsall, Partnership Director at the US High Speed Rail Association (USHSR), told Railway-News the withdrawal of Amtrak and federal funds could help clear the path for private capital, pending state-level approvals. Yet, the pace of future development depends on clearing Texas's legislative barriers, securing financing, and restoring confidence among lenders and landowners. What People Are Saying Jennifer Stevens, from campaign group ReRoute the Route, which opposes the proposed Texas Central line, told The Texan: "This is a company that has been nearly broke for at least half a decade. Now because of this government filing we know Texas Central left a Spanish investor holding the bag on their $5 million investment. They are either unwilling or unable to pay for services rendered more than five years ago." Former Transportation Secretary Ray LaHood told Newsweek in May: "If you build it they will come, if you build it, it will be successful and I think that will be the case with Brightline West, Las Vegas to L.A., and I think it will be true San Francisco to L.A. I think they will be wildly popular. I really believe at this point if you build it they will come and the proof of that is Europe and Asia—their trains are wildly popular." What Happens Next Texas Central leaders intend to continue seeking funding and regulatory approvals while preparing to rebid for lost operating contracts. However, the project's future will depend on whether additional private investors step forward and whether state and federal regulators support a new business model for high-speed rail between Dallas and Houston.
Miami Herald
a day ago
- Politics
- Miami Herald
California High-Speed Rail Reaches New Construction Milestone
A four-lane overpass has opened near Roeding Park in Fresno that will allow the currently under-construction California High-Speed Rail line to pass under West Belmont Avenue according to local newspaper The Fresno Bee. Newsweek contacted the California High-Speed Rail Authority, which is overseeing the project, for comment on Friday via email outside of regular office hours. Construction is underway on the California High-Speed Rail line, which is intended to link Los Angeles and San Francisco. A number of proposed high-speed rail projects are in the works across the United States, and former Obama-era transportation secretary Ray LaHood told Newsweek these could be unlocked if California High-Speed Rail turns out to be a success. However the scheme has attracted the ire of President Donald Trump, who branded it a "green disaster." Earlier in June the Federal Railroad Administration released a 315-page report criticizing the project for missed deadlines and arguing it still has a budget shortfall. The Fresno Bee reported that this week a four lane overpass was completed for West Belmont Avenue taking the road over the Union Pacific rail line at Weber Avenue, as well as the under construction California High-Speed Rail line. Work on the overpass, which is 62 feet wide and over 610 feet long, began in 2022. Another overpass over the high speed rail line was recently opened between Maple and Cedar avenues in southern Fresno, called the Central Avenue grade separation. Earlier in June the California High-Speed Rail Authority said work had been completed on 55 infrastructure projects, such as road overpasses, being built to facilitate the new rail line with the laying of track expected to begin later this year. Finished projects include the 4,741-foot San Joaquin River Viaduct in Fresno along with the Hanford Viaduct situated in Kings County. According to the California High-Speed Rail Authority, the line currently under construction will allow passengers to travel between San Franciso and the Los Angeles basin in less than three hours, with speeds exceeding 200 miles per hour on some sections. The eventual plan is to extend the line to Sacramento and San Diego. 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." In January California Governor Gavin Newsom said: "No state in America is closer to launching high-speed rail than California." Planners hope the California High-Speed Rail line will open for customers at some point between 2030 and 2033. Related Articles US Close to High-Speed Rail BreakthroughPortland Plan To Eliminate Homelessness 'Right On Schedule'Texas High Speed Rail Plan Issued Blow From Trump AdministrationTexas Bill Seeks To Thwart High-Speed Rail 2025 NEWSWEEK DIGITAL LLC.
Newsweek
a day ago
- Business
- Newsweek
California High-Speed Rail Reaches New Construction Milestone
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. A four-lane overpass has opened near Roeding Park in Fresno that will allow the currently under-construction California High-Speed Rail line to pass under West Belmont Avenue according to local newspaper The Fresno Bee. Newsweek contacted the California High-Speed Rail Authority, which is overseeing the project, for comment on Friday via email outside of regular office hours. Why It Matters Construction is underway on the California High-Speed Rail line, which is intended to link Los Angeles and San Francisco. A number of proposed high-speed rail projects are in the works across the United States, and former Obama-era transportation secretary Ray LaHood told Newsweek these could be unlocked if California High-Speed Rail turns out to be a success. However the scheme has attracted the ire of President Donald Trump, who branded it a "green disaster." Earlier in June the Federal Railroad Administration released a 315-page report criticizing the project for missed deadlines and arguing it still has a budget shortfall. The completed Avenue 56 grade separation is seen in Tulare County, California, on June 16, 2025, a similar project to the Roeding Park overpass that has just been completed. The completed Avenue 56 grade separation is seen in Tulare County, California, on June 16, 2025, a similar project to the Roeding Park overpass that has just been completed. California High-Speed Rail What To Know The Fresno Bee reported that this week a four lane overpass was completed for West Belmont Avenue taking the road over the Union Pacific rail line at Weber Avenue, as well as the under construction California High-Speed Rail line. Work on the overpass, which is 62 feet wide and over 610 feet long, began in 2022. Another overpass over the high speed rail line was recently opened between Maple and Cedar avenues in southern Fresno, called the Central Avenue grade separation. Earlier in June the California High-Speed Rail Authority said work had been completed on 55 infrastructure projects, such as road overpasses, being built to facilitate the new rail line with the laying of track expected to begin later this year. Finished projects include the 4,741-foot San Joaquin River Viaduct in Fresno along with the Hanford Viaduct situated in Kings County. According to the California High-Speed Rail Authority, the line currently under construction will allow passengers to travel between San Franciso and the Los Angeles basin in less than three hours, with speeds exceeding 200 miles per hour on some sections. The eventual plan is to extend the line to Sacramento and San Diego. What People Are Saying 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." In January California Governor Gavin Newsom said: "No state in America is closer to launching high-speed rail than California." What Happens Next Planners hope the California High-Speed Rail line will open for customers at some point between 2030 and 2033.
The Hill
2 days ago
- Politics
- The Hill
Panetta: Trump contradicting intelligence assessments ‘a very scary prospect'
Former CIA director Leon Panetta described President Trump's recent remarks doubting the intelligence community while launching military action against Iran as 'very scary' on Thursday. 'It undermines the work of our intelligence professionals who really are focused on trying to provide the president with the truth — when the president questions their credibility, that certainly undermines their morale, I'm sure,' he told the London-based The i Paper. 'But secondly, it also creates a real problem for the president, because if he rejects the intelligence he's receiving, then what will be the basis for the decisions that he makes in the future, and that is a very scary prospect,' the former Obama-era official added. Trump repeatedly rejected Director of National Intelligence (ODNI) Tulsi Gabbard's assessment of Tehran's nuclear capabilities amid the recent Israel-Iran military conflict and before the U.S. bombed three of Iran's major nuclear facilities over the weekend. 'Well, then my intelligence community is wrong,' the president told reporters Friday, when asked about Gabbard's assessment in March that Iran was not working to build a nuclear weapon. After Trump's rebukes, Gabbard updated her analysis to align with the president's. 'America has intelligence that Iran is at the point that it can produce a nuclear weapon within weeks to months, if they decide to finalize the assembly. President Trump has been clear that can't happen, and I agree,' she wrote in a post on social platform X. The Trump administration has also rejected the Defense Intelligence Agency's leaked initial assessment of the blow to Iran's nuclear capabilities following the U.S. strikes. 'There's no question that when the U.S. president makes a statement that our intelligence assessments are wrong and doesn't believe our own intelligence, that creates a very dangerous moment,' Panetta, who is 86 and retired, said in his interview with The i Paper. The former CIA director, who also previously served as Defense Secretary under then-President Obama, said the row raises questions about 'whether or not the U.S. will exercise the right kind of leadership in a dangerous world.' 'I have always been confident about our intelligence assessments with regards to Iran,' he said. 'The fundamental question is: did they make a decision to proceed with developing a weapon? And I think our intelligence indicates that that still was not the case.' The White House didn't immediately respond to The Hill's request for comment on the remarks.
The Hill
3 days ago
- Politics
- The Hill
Trump says nuclear deal with Iran not ‘necessary'
President Trump on Wednesday said he doesn't think it's necessary to come to a deal with Iran to abandon or contain its nuclear program, but said U.S. and Iranian officials will meet next week over a possible agreement. Speaking following the NATO summit in the Hague, Trump said he assessed Iran's nuclear capabilities to be destroyed, despite U.S. intelligence reports suggesting Tehran's uranium enrichment program was set back months, not years. 'The way I look at it, they fought the war is done. I could get a statement that they're not going to go nuclear. We're probably going to ask for that. But they're not going to be doing it,' Trump said. 'We're going to talk to them next week with Iran, we may sign an agreement, to me I don't think it's necessary.' Trump took on a combative tone throughout the press conference, pushing back against questions about the preliminary assessment that U.S. strikes on three of Iran's primary nuclear facilities may not have 'obliterated' Iran's nuclear facilities, as Trump has claimed. 'I said Iran will not have nuclear, well we blew it up, to kingdom come. I don't feel very strongly about it. If we got a document it wouldn't be bad,' Trump said of a nuclear deal. An assessment by Israel's Atomic Energy Commission said that the U.S. strikes coupled with Israel's military operations in the country 'has set back Iran's ability to develop nuclear weapons by many years.' Iran views its right to enrichment of uranium, the fuel needed for a nuclear weapon, as a pillar of their sovereignty and security. Iran maintains its nuclear program was for peaceful purposes, but the U.N.'s nuclear watchdog has raised alarm over the proliferation of enriched uranium moving Iran close to weapons-grade material, and Tehran hiding parts of its nuclear program from international inspectors. Trump withdrew the U.S. from an Obama-era nuclear deal with Iran during his first term. Early in his second term, Trump gave Iran a 60-day window to reach a new agreement, but its leaders rejected a U.S. proposal after five rounds of talks. A planned sixth round was canceled after Israel began strikes on Iran earlier this month.
