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Trump cuts California high-speed rail funding
California is looking for new ways to finance its high-speed rail project following the Trump administration's decision to pull billions of dollars in federal funds from the project.
LOS ANGELES - California's high-speed rail project, which has an estimated cost of nearly $130 billion, is facing new financial challenges after the U.S. Department of Transportation announced it's canceling an additional $175 million in grants.
The state has filed a lawsuit in response, and the California High Speed Rail Authority (CHSRA) is exploring alternative funding streams.
What we know:
The Trump administration, through Transportation Secretary Sean Duffy, is terminating $4 billion in unspent federal funding for the CHSRA. An additional funding cut of $175 million was also announced. This follows a $4 billion funding revocation last month.
In response, California has filed a lawsuit against the federal government, with
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The CHSRA has a report stating that with current funding and a proposal to provide $1 billion annually from the state's "Cap-and-Invest" program until 2045, the project has sufficient funds to complete the 171-mile Merced-to-Bakersfield segment.
This segment currently has nearly 70 miles of guideway complete, with 55 fully completed structures and 29 more under construction.
Big picture view:
Despite the federal funding cuts and political controversy, a new poll suggests that more than half of California voters still support the high-speed rail project.
The poll, conducted by Politico, the UC Berkeley Citrin Center, and the Possibility Lab, found that more than 60% of Californians believe the state should continue to bankroll the rail line. Support is stronger among Democrats compared to independents and Republicans.
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However, the poll also reveals widespread skepticism, as less than a quarter of respondents believe the project will ever be completed.
What's next:
The CHSRA is continuing to move the project forward.
Project supporters are exploring alternative revenue streams to secure funding. These potential options include building solar farms to power the train and sell excess energy, selling right-of-way for utility lines, developing real estate near stations, and allowing freight service during off-peak hours.
According to the CHSRA, a long-term funding commitment from the state is crucial to attracting private investors and industry partners. The report also cautioned that state action is needed to secure financing to extend the project to the Bay Area.
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In an effort to accelerate construction, the board of directors has approved a process to solicit bids from companies for the sale of tracks and other necessary components.
The agency views this as a major milestone toward launching the nation's first high-speed track within the next year.
The Source: This report is based on announcements from the U.S. Department of Transportation and the California High Speed Rail Authority's (CHSRA) most recent project report. Public opinion data is drawn from a new poll conducted by Politico, the UC Berkeley Citrin Center, and the Possibility Lab, providing a comprehensive view of the project's status and public perception. FOX Business contributed.