USDOT investigating California’s $135 billion high-speed rail project

• U.S. Department of Transportation Secretary Sean Duffy announced an investigation into California’s high-speed rail program. In his announcement, Duffy cited concerns over its budget and delays.

• DOT officials will review whether the California High-Speed Rail Authority has fulfilled its commitments for federal funding, with potential redirection of funds if not.

• The high-speed rail project has faced criticism for its $135 billion price tag, numerous delays, and cost overruns, and reports indicate it may not be completed on schedule.

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U.S. Department of Transportation (DOT) Secretary Sean Duffy, on Thursday, Feb. 20, announced an investigation into California’s high-speed rail program. 

“For too long, taxpayers have subsidized the massively over-budget and delayed California High-Speed Rail project,” said Duffy in a statement. “President Trump is right that this project is in dire need of an investigation.”

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Duffy instructed DOT officials to review and determine whether the California High Speed Rail Authority has followed through on its commitments to have received billions of dollars in federal funding. If the department finds otherwise, Duffy said he’ll consider redirecting those funds elsewhere.

The series of projects has been criticized for its lack of progress and increasing price tag. Initial funding for the rail line was approved through a 2008 ballot measure and federal grants. The delays continued until the first tracks were laid last month. It’s estimated to cost $135 billion in total. The authority is due to receive $4 billion in federal funding from a Biden administration grant. 

A report from California’s Inspector General’s office released this month found that the Merced-to-Bakersfield line, only a portion of the total program, wouldn’t finish on schedule and was facing a $6.5 billion cost overrun. The report blamed the higher price tag on “third-party conflicts.” The report said it’s “unlikely” that the line would operate by its target date of 2030.

Another concern is the cost of a ticket. The state estimates that travel from Los Angeles to San Francisco will cost $86, more than a plane ticket between the cities.

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California Republican lawmakers wrote Trump in January asking for an investigation into the state’s high-speed rail program. 

The California High Speed Rail Authority released a statement shortly after Thursday’s announcement.

“We welcome this investigation & look forward to working with federal partners,” the authority said in a social media post. “CA High-Speed Rail has been audited over 100x, every dollar is accounted for & progress is real – 50 structures built, 14,600 jobs created & 171 miles under construction.”