California High-Speed Rail Project Braces for Funding Loss

The California high-speed rail project now stands at a crossroads as federal officials threaten to reclaim $4 billion, forcing Sacramento to prove the landmark venture still merits public and private investment. This is reported by the railway transport news portal Railway Supply.

An FRA review released Monday called the scheme “a story of broken promises” because managers missed deadlines, approved costly change orders, and still need $7 billion. Auditors concluded they see no viable path to completion.

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California has already spent $14 billion, drawing 82 percent from state coffers and 18 percent from Washington; however, projected costs climbed toward $133 billion, nearly quadrupling the $33 billion estimate voters approved in 2008. That ballooning price tag alarms federal overseers.

Funding Threatens California High-Speed Rail Project

Authority chair Lenny Mendonca blasted the review, claiming it overlooks significant progress and promising a line-by-line rebuttal within the FRA’s 37-day window. Senators Alex Padilla, Adam Schiff, and Scott Wiener called the threatened clawback devastating.

Construction also collides with a California rule requiring utility owners to approve relocation before crews move pipelines, cables, or power lines, and inspectors note these firms lack incentive to act quickly. Lawmakers are drafting a fix.

Despite the turmoil, public backing endures because construction already created more than 15 000 Central Valley jobs and promises thousands more statewide. A Politico–UC Berkeley survey found 67 percent of registered voters still support the California high-speed rail project.

Deadlines Aim to Save California High-Speed Rail Project

Chief Executive Ian Choudri now courts investors the state would repay over time. Meanwhile, Senate Bill 123 targets utilities, telecoms, and local governments with strict approval deadlines for all transit projects.

Investors will demand a clear roadmap, and the federal decision expected in July could supply it. Should Washington revoke funds, Sacramento must improvise fast; if not, track laying could finally accelerate toward the coast.

Success would redefine travel across America’s most populous state, cut inter-city journeys to under three hours, and showcase low-carbon infrastructure, but failure could erode public faith in megaprojects and chill future clean-transport investments nationwide.

Source, photo: www.axios.com

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