Transportation Secretary Sean Duffy announced that the Federal Railroad Administration will begin a review of California High-Speed Rail Authority's compliance under FRA-administered grants.
- The announcement was made on Thursday morning with republican lawmakers like Congressman Vince Fong and State Senator Shannon Grove standing in support.
- When speaking with 23ABC, Fong said he takes issue with the price tag that has inflated over time, saying he believes that the money should be spent on more pressing matters in the Central Valley.
- CHSRA CEO Ian Choudri said in a statement to 23ABC, that they welcome the review and are proud of the work that the Authority has been able to accomplish.
BROADCAST TRANSCRIPT:
Earlier this year, state leaders were touting the progress of the high-speed rail project, however on Thursday the federal government announced it is taking a closer look at its funding of it. I'm Sam Hoyle, your neighborhood reporter. The Federal Transportation Secretary Sean Duffy announcing Thursday, that the Federal Railroad Administration will review the California High-Speed Rail Authority's compliance under FRA-Administered Grants.
The FRA's chief legal counsel said in a letter to the high-speed rail CEO Ian Choudri that findings from the review could result in remedial action like, "withholding reimbursements."
With republican lawmakers standing in support of the review, Congressman Vince Fong saying that the money could be allocated to more pressing needs for the Central Valley.
"I think this project needs to stop. We need to reinvest the billions of dollars that would go into this project, into more pressing priorities, more water infrastructure, more water storage, more forest management, more highway improvement, expanding rural road safety, investing in our supply chain. If you asked any Californian right now, if there was $100 billion available to invest, I don't believe that a high-speed rail would even make that list," said Fong.
In January, as the Trump Administration was preparing to take office, Governor Gavin Newsom noted during the first administration, something very similar happened and the state fully expected to see something like this again.
"The last time he tried to take a billion dollars, didn't necessarily slow down the project. It was held in advance. It was litigated. The money was ultimately returned to the people of the state of California," said Newsom during a High-Speed Rail Press Conference in Shafter in January.
A release from the DOT says, "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."
A statement from High-Speed Rail's CEO Ian Choudri said they welcome the review, reading in part, "With multiple independent federal and state audits completed, every dollar is accounted for, and we stand by the progress and impact of this project. California's high-speed rail is 171 miles under active construction, with over 50 major structures completed, 14,700 jobs created, and more than 880 small businesses engaged. This investment has already generated $22 billion in economic impact, primarily benefiting the Central Valley."
In the letter from the FRA's legal counsel, it states that any work completed at this point is at the risk of the CHSRA. A spokesperson for the High-Speed Rail Authority said construction will continue at this point.
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