A new Department of Transportation report criticizes California’s high-speed rail project, calling it a mismanaged ‘boondoggle.’
California’s long-delayed high-speed rail project is in default of federal grant agreements and may soon lose more than $4 billion in funding, the U.S. Department of Transportation said on June 4.
A report released by the department accuses the California High-Speed Rail Authority (CHSRA) of chronic mismanagement, unrealistic projections, and failure to meet key obligations, despite receiving billions in taxpayer money.
The Federal Railroad Administration (FRA) concluded that the bullet train has “no viable path” to finish the project’s first operational segment by 2033, the deadline outlined in federal agreements.
In a letter to Ian Choudri, CHSRA’s CEO, the FRA stated that the agency intends to terminate two grants totaling roughly $4 billion unless California responds with a satisfactory corrective plan. CHSRA has up to 37 days to avoid a final termination.
The letter outlines nine key findings from a 310-page compliance review, including a $7 billion funding gap, missed procurement deadlines, and what the FRA referred to as “substantially overrepresented” ridership forecasts.
The FRA letter called the rail project “a story of broken promises and of waste of Federal taxpayer dollars.” It noted that what began as a proposed 800-mile system was “first reduced to 500 miles, then became a 171-mile segment, and is now very likely ended as a 119-mile track to nowhere.”
Transportation Secretary Sean Duffy said the report justifies reprogramming the funds to other projects.
“This report exposes a cold, hard truth: CHSRA has no viable path to complete this project on time or on budget,” Duffy said in a statement.
“CHSRA is on notice—If they can’t deliver on their end of the deal, it could soon be time for these funds to flow to other projects that can achieve President Trump’s vision of building great, big, beautiful things again. Our country deserves high-speed rail that makes us proud—not boondoggle trains to nowhere.”
The FRA report found that CHSRA has not yet laid a single mile of high-speed rail track, despite more than $6.9 billion in total federal funding since 2009. It also said that CHSRA continues to rely on unstable funding sources, such as California’s cap-and-trade auction revenues, to fill budget gaps.
By Chase Smith
