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The US government has confirmed that it will investigate California’s High-Speed Rail project to determine if it justifies $4 billion in federal funding amid escalating costs and significant delays.
Some shit you should know before you read: Back in the 1990s, California lawmakers proposed the High-Speed Rail project as a solution to traffic congestion and environmental concerns. They envisioned a fast train system that connected to major cities across the state. The rail line would run from San Francisco to Los Angeles through the Central Valley, with future extensions planned to Sacramento and San Diego. Voters approved the project in 2008 through a bond measure, and construction officially began in 2015, initially focusing on a 171-mile segment between Merced and Bakersfield. Originally estimated to cost $33 billion with a completion date of 2020, the budget has since soared to $106 billion, leading to significant delays and funding challenges.
What’s going on now: In an announcement, Transportation Secretary Sean Duffy announced that the US Department of Transportation will conduct a formal compliance review of California’s High-Speed Rail project to determine if it justifies $4 billion in federal funding. The investigation will specifically examine whether the California High-Speed Rail Authority (CHSRA) has met the commitments it made to receive federal money, focusing on the Merced-to-Bakersfield segment, which has faced significant cost overruns and delays. While speaking to reporters, Secretary Duffy said, “For too long, taxpayers have subsidized the massively over-budget and delayed California High-Speed Rail project. resident Trump is right that this project is in dire need of an investigation.”
Secretary Duffy said the review will assess how federal funds have been spent and whether the project adhered to agreed timelines and budget requirements. Duffy warned that the federal government may withhold reimbursements or terminate funding agreements if the investigation reveals non-compliance. “If not, I will have to consider whether that money could be given to deserving infrastructure projects elsewhere in the United States,” he added, highlighting the administration’s commitment to responsible use of taxpayer dollars.
In response to the investigation, California High-Speed Rail Authority (CHSRA) CEO Ian Choudri expressed support for the review, stating, “We welcome this investigation and the opportunity to work with our federal partners. With multiple independent federal and state audits completed, every dollar is accounted for, and we stand by the progress and impact of this project.” Choudri noted that 171 miles of the rail line are already under construction, with over 50 major structures completed. He also noted the project’s economic benefits, saying, “This investment has already generated $22 billion in economic impact, primarily benefiting the Central Valley.” According to Choudri, the project has created 14,700 jobs and has involved over 800 small businesses.
