U.S. Transportation Secretary Sean P. Duffy has released a report by the Federal Railroad Administration (FRA) indicating that the California High-Speed Rail Authority (CHSRA) is not meeting the terms of its federal grant awards. The report highlights issues such as missed deadlines, budget shortfalls, and exaggerated ridership projections. These grants amount to approximately $4 billion in taxpayer money.
The FRA's findings suggest that CHSRA has 37 days to respond before potential termination of the grants. In a letter to CHSRA CEO Ian Choudri, the FRA pointed out project delays, mismanagement, waste, and rising costs. Despite receiving about $6.9 billion in federal funding over fifteen years, no high-speed track has been laid.
Transportation Secretary Duffy said, "I promised the American people we would be good stewards of their hard-earned tax dollars. This report exposes a cold, hard truth: CHSRA has no viable path to complete this project on time or on budget."
Earlier this year, Secretary Duffy announced an investigation into CHSRA’s high-speed rail project and two grants awarded: a $929 million Cooperative Agreement from 2010 and a $3.07 billion Cooperative Agreement from last year.
The FRA conducted a detailed review involving state oversight entities, construction site visits, risk analysis, meetings with CHSRA officials, and document reviews. The 310-page report includes nine key findings such as numerous change orders due to contractor expenses from project delays and a $7 billion funding gap with no credible plan for additional funds.
The report concludes that CHSRA is unlikely to complete the Early Operating Segment (EOS) by 2033 as per its commitments. The project's scope has reduced significantly from an original vision of connecting major Californian cities to just 119 miles currently planned.
Duffy emphasized that if CHSRA cannot fulfill its obligations under the agreements, federal funds might be redirected to other projects aligned with President Trump's infrastructure goals.
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