On July 16, U.S. Transportation Secretary Sean P. Duffy announced that the Federal Railroad Administration has terminated approximately $4 billion in unspent federal funding for California’s High Speed Rail project. At its inception, the project was intended to be completed in two phases; phase one spanning from San Francisco to Los Angeles/Anaheim through the Central Valley, with phase two expanding to reach north to Sacramento and south to San Diego. The CHSR project would have gone through several RCRC counties including Merced, Tulare, and Kings.
The decision to terminate funding follows FRA’s exhaustive compliance review, after which the California High-Speed Rail Authority (CHSRA) was given two opportunities to respond consistent with the grant agreements. After neither response was deemed adequate to address FRA’s concerns, the Administration determined that CHSRA cannot meet its obligations under the grant agreement. Read the full termination here.
In addition to canceling $4 billion in unspent federal funds to CHSRA, Secretary Duffy has directed FRA to review other obligated and unobligated grants related to the CHSRA project. The Department of Transportation will also consult with the Department of Justice on the findings of FRA’s Compliance Review to identify other potential issues under Federal law.
For more information, contact RCRC Policy Advocate, Eric Will.