California is defending its high-speed rail project after the Trump administration proposed withdrawing $4 billion in federal funding. The California High-Speed Rail Authority (CHSRA) argued on Monday that the move was illegal and based on flawed analysis. The U.S. Transportation Department suggested the funding cut after a compliance review found issues with cost overruns, reduced ridership forecasts, and missed deadlines. They claimed there was no viable path to complete the initial segment by the 2033 deadline.
In response, California officials insisted the project complies with federal grant requirements and will meet the 2033 deadline for starting limited operations in the Central Valley. Ian Choudri, CHSRA’s chief executive, stated that the federal government’s conclusions were unsupported. The proposed termination involves two grants: $928 million from 2010 and $3.1 billion from 2024.
The state highlighted progress in construction, including 54 structures and 70 miles of rail bed completed, and noted that environmental reviews are finished for the entire route between the Bay Area and Southern California. The original plan was to connect Los Angeles and San Francisco with 220-mph trains by 2020, but costs have risen to $128 billion with an uncertain completion date.
Federal officials argue the project is $7 billion short, a claim California disputes, citing plans to extend the cap-and-trade program to generate additional funding. The state also plans to seek private investment and reduce costs. However, critics point out that ridership projections and benefit-cost analyses may be overly optimistic.
If the federal funding is revoked, Governor Gavin Newsom’s goal of completing the segment between Merced and Bakersfield could be jeopardized. The state may need to pursue legal action to reverse the decision, a process that could take years.
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