Shocker of the day — well, the afternoon, at least

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Shot: 

California’s high-speed rail leaders sound alarm over project’s financial future.

As California’s High-Speed Rail Authority awaits word from the Trump administration over its future support for the train, leaders who oversee the project sounded the alarm about its financial viability.

The authority’s board of directors voted Thursday to approve contracts for the development of Central Valley station designs and to solicit and approve construction bids for the Fresno station. Ahead of the votes, board member James Ghielmetti raised concerns over the potential loss of funds from the Department of Transportation and the risk of moving forward on payment commitments when federal funding is in jeopardy.

“I’m very nervous about receiving the federal funding,” Ghielmetti said. “I want to make sure my fellow board members are aware that if the federal money does not come through, somebody’s got to backstop these contracts.”

—The L.A. Times, yesterday.

Chaser:

They’re right to be worried panicked this time:

U.S. Transportation Secretary Duffy Announces Review of California High-Speed Rail Project

Thursday, February 20, 2025

WASHINGTON – Today, at the direction of Secretary of Transportation Sean P. Duffy, the Federal Railroad Administration (FRA) initiated a review of the California High-Speed Rail Authority (CHSRA). This review will help determine whether roughly $4 billion in taxpayer money should remain committed to the proposed project to build high-speed rail in the California Central Valley between Merced and Bakersfield.

The entire San Francisco to Los Angeles project was initially supposed to be completed by 2020 and cost $33 billion. Today, the Merced-to-Bakersfield segment alone would cost more than the original total. The latest estimate for San Francisco to Los Angeles is $106 billion — more than three times the original cost estimate.

….

As recently noted by the California High-Speed Rail Office of the Inspector General, just the Merced-to-Bakersfield segment has a funding gap of at least $6.5 billion. That gap remains despite California being due to receive over $4 billion from the Biden Administration. The CHSRA Inspector General also found that even this limited project, with barely 2 million in annual projected ridership because it fails to connect California’s larger cities, is unlikely to be completed by 2033.

In March of 2023, the CHSRA Peer Review Group, charged with evaluating CHSRA’s funding plans, reported an “unfunded gap of $92.6 billion to $103.1 billion between estimated costs and known State and Federal funding” for the San Francisco-to-Las Angeles connection. Given the red flags raised about this project, FRA will investigate the delays and cost overruns through a compliance and performance review.