California high-speed rail faces House probe over ballooning costs

Federal Investigation Launched into California’s High-Speed Rail Project

House Oversight Committee is initiating an inquiry into California’s high-speed rail project, which has been marred by cost overruns and delays.

Committee Chair James Comer, R-Ky., has reached out to the Department of Transportation (DOT) for a briefing and documents related to federal funding allocated to the project, championed by Governor Gavin Newsom.

California voters approved nearly $10 billion in taxpayer funds in 2008 for an 800-mile high-speed rail system linking San Francisco and Los Angeles, initially estimated to cost $33 billion. However, recent reports suggest the project’s price tag could soar to $128 billion.

The California High-Speed Rail Authority (CHSRA) anticipates the commencement of train operations in 2030, a decade behind schedule.

The Trump administration recently withdrew $4 billion in unspent federal funds from the project, citing lack of progress and escalating costs.

Concerns Over Misleading Ridership Projections

Comer criticized the project’s ridership and revenue forecasts, labeling them as “absurdly high” and “unrealistic.” He questioned whether funds were secured under false pretenses due to allegedly misleading projections.

Newsom denounced the funding blockade as a “political stunt,” defending the project’s importance for job creation in California’s Central Valley.

The ongoing legal battle over the blocked funds has intensified the rift between California and the federal government.

Response from Authorities

The DOT has estimated the total cost of the project to reach $135 billion and dismissed it as a “boondoggle.”

A spokesperson for the CHSRA dismissed the probe as a “baseless attempt to manufacture controversy,” asserting the project’s integrity and addressing previous criticisms.

Efforts to secure funding for the project continue, with Newsom’s budget earmarking $1 billion annually for the next 20 years to complete the initial segment.

Looking Ahead

The investigation by the House Oversight Committee underscores the challenges and controversies surrounding California’s high-speed rail project.

Stay tuned for updates on this developing story as federal and state authorities navigate the complexities of America’s largest infrastructure endeavor.