December 9, 2010

FRA to redirect $1 billion in high-speed rail funds

The Federal Railroad Administration (FRA) will redirect $1.195 billion in high-speed rail funds originally designated for Wisconsin and Ohio to other states eager to develop high-speed rail corridors across the U.S.

Wisconsin suspended work under its existing high-speed rail agreement, and the incoming Governors in Wisconsin and Ohio have both indicated that they will not move forward to use high-speed rail money received under the American Recovery and Reinvestment Act (ARRA). As a result, $1.195 billion will be redirected to high-speed rail projects already underway in other states.

“High-speed rail will modernize America’s valuable transportation network, while reinvigorating the manufacturing sector and putting people back to work in good-paying jobs,” said Transportation Secretary Ray LaHood. “I am pleased that so many other states are enthusiastic about the additional support they are receiving to help bring America’s high-speed rail network to life.”

The Recovery Act included $8 billion to launch a national high-speed rail program that will modernize America’s transportation network, spur economic development domestically and keep the U.S. competitive with other leading nations. High-speed rail grants announced under the Recovery Act can be used only for high-speed rail projects and not for other transportation projects.

Last year, the Obama Administration received a commitment from 30 domestic and foreign rail manufacturers to establish or expand their base of operations in the U.S., if selected for contracts building America’s high-speed rail network. These rail manufacturers and suppliers committed to not only locate in the U.S., but to ensure high-speed rail projects are built by American workers with American-made supplies.

To deliver maximum economic benefits to American taxpayers, the Administration’s high-speed rail program also includes a 100 percent ‘Buy American’ requirement.

Under the Recovery Act, the FRA originally announced $810 million for Wisconsin’s Milwaukee-Madison corridor and $400 million for Ohio’s Cincinnati-Columbus-Cleveland “3C” route. The FRA will redirect $810 million from Wisconsin and $385 million from Ohio, and will work with these states to determine whether they have already spent money under their contracts that should be reimbursed.

The $1.195 billion originally designated for those high-speed rail projects in Wisconsin and Ohio will now be used to support projects in the following states:

  • Washington State: up to $161.5 million.
  • Illinois: up to $42.3 million.
  • New York: up to $7.3 million.
  • Maine: up to $3.3 million.
  • Massachusetts: up to $2.8 million.
  • Vermont: up to $2.7 million.
  • Missouri up to $2.2 million.
  • Wisconsin: up to $2 million for the Hiawatha line.
  • Oregon: up to $1.6 million.
  • North Carolina: up to $1.5 million.
  • Iowa: up to $309,080.
  • Indiana: up to $364,980.

 EXTRA: Click here to find out how much Japan is offering to help pay for Florida's high-speed rail project.

 

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