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https://www.foxla.com/news/california-high-speed-rail-project-no-viable- path-forward

LOS ANGELES - The U.S. Department of Transportation (USDOT) has released a
new report detailing significant issues with California's high-speed rail project.

The Federal Railroad Administration (FRA) found the project in default of
its federal grant terms, citing missed deadlines, budget shortfalls, and overrepresented ridership projections.

What we know:
The FRA has issued a 300-page Compliance Review Report, concluding that
the California High-Speed Rail Authority (CHSRA)'s high-speed rail project
is in default of its federal grant awards.

These two grants collectively amount to approximately $4 billion in
taxpayer money.

SUGGESTED: Newsom defends high-speed rail project

The report outlines nine key findings, including project delays,
mismanagement, waste, and skyrocketing costs.

Despite receiving around $6.9 billion in federal funds over roughly
fifteen years, no high-speed track has been laid.

What they're saying:
U.S. Transportation Secretary Sean P. Duffy expressed strong disapproval regarding the project's progress.

"I promised the American people we would be good stewards of their hard-
earned tax dollars. This report exposes a cold, hard truth: CHSRA has no
viable path to complete this project on time or on budget," said Secretary Duffy.

SUGGESTED: California high-speed rail: $15.7B already invested in 'failed' project as Republicans criticize Newsom

He also issued a warning to CHSRA: "If they can�t deliver on their end of
the deal, it could soon be time for these funds to flow to other projects
that can achieve President Trump�s vision of building great, big,
beautiful things again. Our country deserves high-speed rail that makes us proud � not boondoggle trains to nowhere."

Timeline:
The investigation into the CHSRA's high-speed rail project began in
February, when Secretary Duffy announced that USDOT would be launching a
review of two specific grants: a $929 million Cooperative Agreement from
2010 and a $3.07 billion Cooperative Agreement from last year.

Under the Secretary�s direction, the FRA conducted a detailed review of
CHSRA�s compliance with federal grant agreements related to over $4
billion in funding.

SUGGESTED:Trump vows to investigate California's High Speed Rail project

As part of its investigation, the FRA contacted state oversight entities, visited construction sites, conducted a risk analysis, met with CHSRA officials, and reviewed several thousand documents.

Key Findings:
The FRA's 310-page report details nine key findings concerning the
project's issues:

CHSRA has executed numerous change orders and is likely to have many more
in the near future due to contractor expenses from project delays.
CHSRA has already missed its deadline for finalizing its rolling stock procurement.
CHSRA has at least a $7 billion funding gap to complete the Early
Operating Segment (EOS), with no credible plan to secure additional funds. CHSRA does not have a viable path to complete the EOS by 2033 as committed
in the FY10 Agreement and the FSP Agreement.
CHSRA relies on volatile non-federal funding sources, which present
significant project risk.
CHSRA lacks the time and money to electrify the EOS by 2033.
CHSRA's budget contingency is inadequate to cover anticipated contractor
delay claims.
CHSRA has substantially overrepresented its ridership projections for the
EOS.
CHSRA lacks the capacity to deliver the EOS by 2033.
The backstory:
The California High-Speed Rail project was initially envisioned in 2008 as
a two-phase system connecting Los Angeles to San Francisco, and later
extending north to Sacramento and south to San Diego, covering an 800-mile segment.

Since then, the project's footprint has been significantly reduced, first
to a 171-mile segment and now to the current vision of 119 miles.

SUGGESTED: Audience gets rowdy during CA high-speed rail update

Despite substantial federal support and funding, the FRA's report states
that CHSRA does not have the capacity to deliver the full high-speed rail system.

The current compliance review indicates that CHSRA "has not learned from
its mistakes and mismanagement and has therefore failed to create an organization capable of effectively and efficiently managing project
delivery."

What's next:
CHSRA has up to 37 days to respond to the FRA's report.

Failure to provide a satisfactory response could result in the termination
of the federal grants, meaning the nearly $4 billion in taxpayer money
could be reallocated to other projects.

The FRA notes that CHSRA's "inability to deliver the EOS by 2033 renders
the CHSR Project inconsistent with the goals of the HSIPR Program and constitutes a Project Material Change under the FSP Agreement. These
findings support a conclusion that CHSRA is in default under the FSP
Agreement and the CHSR Project no longer effectuates the goals of the
funding programs, which may give rise to an action under the funding agreements, which could include termination."

SUGGESTED: Trump investigating California's high-speed rail project

The FRA also raises a "reasonable question about whether continued Federal investment in the CHSR System is a prudent use of taxpayer dollars."


--
November 5, 2024 - Congratulations President Donald Trump. We look
forward to America being great again.

We live in a time where intelligent people are being silenced so that
stupid people won't be offended.

Every day is an IQ test. Some pass, some, not so much.

Thank you for cleaning up the disasters of the 2008-2017, 2020-2024 Obama
/ Biden / Harris fiascos, President Trump.

Under Barack Obama's leadership, the United States of America became the
The World According To Garp. Obama sold out heterosexuals for Hollywood
queer liberal democrat donors.

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