California Suspends Lawsuit Over Federal Funding of High-Speed Rail
Written by David C. Lester, Editor-in-Chief
California has concluded that it cannot rely on federal funding for high-speed rail.
Courtesy of CHSRA
SACRAMENTO –– The State of California has dropped its lawsuit against the POTUS 47 Administration, regarding federal funding of high-speed rail, concluding that the federal government will no longer provide funding for the system.
According to Bloomberg’s reporting in the Mercury News, the California High-Speed Rail Authority (CHSRA) communicated in an email that “This [our] action reflects the State’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California.” CHSRA added that the Federal Railroad Administration reported that the Authority’s work was “at risk” of not being paid, so California determined that the POTUS 47 administration is not going to hold up its commitments on this front.
On December 19, CHSRA solicited the participation of private investors in the project, which, according to a recent inspector general report, will cost $128 billion. Moreover, the IG report said the project’s multibillion-dollar shortfall is made even worse by the lack of federal participation and that it’s doubtful that service will begin on the hopeful date of 2033.
CHSRA also said the elimination of reliance on federal funding would rid the project of of federal funding requirements that “have, at times, hindered project delivery by adding cost and delays without adding value.”
