California Leaders Vow to Move Forward with HSR

By Sean Jeans-Gail | VP of Gov’t Affairs + Policy

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California Democrats are organizing to defend the state's high-speed rail project following the Federal Railroad Administration's (FRA) June 4th announcement that it intends to revoke $4 billion in Federal grants. The FRA's decision cites delays, budget overruns, and concerns about the project's long-term sources of funding. However, Democratic leaders argue that the FRA's conclusions are misguided and fail to acknowledge the substantial progress that’s been made.

In response to the FRA’s announcement, the California High-Speed Rail Authority (CHSRA) defended its progress, noting that more than 170 miles of track are under design and construction and that the project has already generated more than 15,300 jobs. CHSRA asserts that the FRA's assessment does not reflect the reality on the ground, which includes progress in several key areas, such as:

• More than 52 structures and 69 miles of guideway complete on the initial 119-mile segment currently under construction between Madera, Fresno, Kings, and Tulare counties;
• 15,300 family wage construction jobs for residents, with over 97 percent being filled by Californians, and 70 percent going to residents of the Central Valley;
• 463 miles of the 494-mile San Francisco to Los Angeles/Anaheim high-speed rail system fully environmentally cleared and ready for construction;
• $714 million provided by the Authority to help fund the successful Caltrain Electrification Project, which has led to a 40% increase in current ridership and paves the way for future high-speed rail blended service;
• $76.7 million provided by the Authority to support the Rosecrans/Marquardt grade separation – a public safety enhancement addressing the most hazardous grade crossing in California which is already improving road safety and efficiency; and
• $423 million contributed by the Authority towards Los Angeles Union Station’s Link Union Station (Link US) Project to upgrade and transform the station into a world-class facility.

State Senator Scott Wiener—a leading voice in the state for passing policy reforms to make it easier to build major transit projects, including high-speed rail—vowed to keep fighting for the project, stating that California will not allow federal opposition to derail the project.

“We’ve seen this coming and we’re going to do everything we can to prevent it,” said Wiener, who Chairs the State Senate Budget Committee. “Regardless of what happens here, we’re committed to making this project a reality.”

Governor Gavin Newsom has also recently reaffirmed his commitment to support the project in May, emphasizing its importance for California's transportation future and environmental goals. The governor’s budget—which is currently before the California State Legislature—has proposed allocating at least $1 billion annually from the state's cap-and-trade program to ensure the project's continuation.

An Inconsistent Federal Partner

The CHSRA has 30 days to submit a “corrective action plan,” but it is unlikely that the Authority will be able to change the minds of leadership at USDOT and within the Trump Administration, which attempted to revoke a $929 million grant to the project during President Trump’s first term (and which the Biden Administration later restored). As a result, legal action between the Authority and the FRA may follow.

One of the main problems facing CHSRA is that many of the FRA’s arguments have a strong grounding in truth: it has missed deadlines, cost projections have risen, and there is uncertainty over future funding.

However, it’s important to acknowledge that the Federal government and Congress have played key roles in many of these poor outcomes. Radically inconsistent funding, legislative attacks by Congressional Republicans on the project, and byzantine environmental review processes have all tacked on years to the development phase. These, in turn, have driven the project’s cost as inflation has increased cost of material and labor inputs. And within this framework, California has been covering roughly 80 percent of total costs while the Feds provide 20 percent—compare that to a highway project, where the Federal share is 80 percent.

Unfortunately for Americans, this project is a microcosm of how our country builds infrastructure in the 21stcentury—a fact that has been exhaustively covered across all forms of media.

Fortunately for passenger advocates, this means even people who are passenger train skeptics are still potential allies in our fight to make it easier and cheaper to build safe, modern, and efficient rail systems.

And that coalition may include none other than…Transportation Secretary Sean Duffy!

As astutely pointed out by the High Speed Rail Alliance, when talking about the sclerotic and failed efforts to modernize the U.S. Air Traffic Control System, Secretary Duffy becomes Mr. Can-Do; the kind of leader who says “failure isn’t an option.”

“We have to build a brand-new air traffic control system,” said Secretary Duffy. “It will require tens of billions of dollars. We can’t get started until Congress gives us the money… We have $12 billion in the Big Beautiful Bill [but] it is not enough. Also, we need Congress to clear the deck for me on permitting so that we can build fast.”

This country has built big things fast, and sometimes it still does! It takes political leaders who are willing to look at the policies that are broken and fix them, and invest real money in good projects.

Next Steps

If this project is to move forward, California needs to fix the things that are within the state’s control. That includes passing the provision in Governor Newsom’s budget to provide a dedicated source of funding for the project later this month, then passing policy reforms to speed up project permitting.

Rail Passengers will be launching a campaign to ensure that the deadline is met. When that’s accomplished, focus can shift back to the Federal government to ensure it doesn’t renege on its agreements with the citizens of California.