METRO Magazine Logo
MenuMENU
SearchSEARCH

Feds cancel $929 million in grant funds for California's high-speed rail

U.S. DOT is also actively exploring legal options to seek the return of $2.5 billion in federal funds.

February 20, 2019
Feds cancel $929 million in grant funds for California's high-speed rail

Last week, California Gov. Gavin Newsom said that he wants to scale back the state’s beleaguered high-speed rail project, focusing for now only on the Central Valley segment between Merced and Bakersfield.

CHSRA

2 min to read


Last week, California Gov. Gavin Newsom said that he wants to scale back the state’s beleaguered high-speed rail project, focusing for now only on the Central Valley segment between Merced and Bakersfield.

CHSRA

The Federal Railroad Administration (FRA) announced that it intends to cancel $929 million in federal grant funds that were to be paid for the California High-Speed Rail project envisioned to connect the L.A. Basin to the San Francisco Bay Area. In addition, the U.S. DOT is actively exploring every legal option to seek the return from California of $2.5 billion in federal funds FRA previously granted for the project.

In its letter, the FRA said that the California High-Speed Rail Authority (CHSRA) “materially failed to comply with the terms for the agreement and has failed to make reasonable progress on the project, significantly endangering substantial performance.”

Ad Loading...

The FRA said its determination was based on many factors, including that the CHSRA failed to achieve the state contribution rates described in its quarterly Funding Contribution Plan; that based on CHSRA board reports, the project will not be completed by 2022, which is the end of the agreement’s period of performance; that CHSRA has failed to submit required critical grant deliverables to demonstrate the agency is effectively managing delivery of the project; and that based on findings from FRA’s oversight and monitoring, CHSRA has failed to take the appropriate corrective actions to ensure delivery of the project.  

Last week, California Gov. Gavin Newsom said that he wants to scale back the state’s beleaguered high-speed rail project, focusing for now only on the Central Valley segment between Merced and Bakersfield.

“I know that some critics will say this is a ‘train to nowhere.’ But that’s wrong and offensive,” he said during his State of the State address. “The people of the Central Valley endure the worst air pollution in America as well as some of the longest commutes. And they have suffered too many years of neglect from policymakers here in Sacramento. They deserve better.”

Addressing that decision, the letter said the state’s plan to significantly change the high-speed rail system further concerned the FRA because of the CHSRA’s past performance, adding that the change in initial vision “frustrates the purpose for which federal funding was awarded.”

The FRA is giving the CHSRA until March 5 to submit supporting information that the CHSRA has satisfied its commitments and obligations under the agreement; is making reasonable progress to deliver the project; and that the Governor’s announcement does not constitute a fundamental change in the purpose of the overall project for which the Federal funding was awarded.

More Rail

A New York MTA subway car with an open gangway
Railby Staff and News ReportsSeptember 16, 2026

New York MTA Advances Final Contract for Second Avenue Subway Expansion

Contract Four is the largest in the Second Avenue Subway Phase 2 project and includes construction of station infrastructure, tracks, and signals for the subway expansion, MTA officials said. Work on Contract Four will begin in 2027.

Read More →
A San Diego MTS Copper Line vehicle
Railby Staff and News ReportsSeptember 15, 2026

San Diego MTS Breaks Monthly Trolley Ridership Record

Agency officials said July’s ridership indicates MTS’s continued recovery from the pandemic.

Read More →
NJ TRANSIT's new Multilevel III commuter railcar manufactured by Alstom
Railby Alex RomanSeptember 14, 2026

Report Examines NJ TRANSIT Reliability, Funding Challenges

The Garden State Initiative analysis examines the roles of Amtrak infrastructure, fleet management, and agency operations while recommending a more performance-based approach to improving reliability.

Read More →
Ad Loading...
A CapMetro commuter rail train provided by Stadler
Railby Staff and News ReportsSeptember 11, 2026

Stadler, CapMetro Sign Long-Term Rail Fleet Support Agreement

Beginning in 2027, Stadler will provide on-site technical expertise, spare parts support, training, and obsolescence management to help extend the reliability and longevity of CapMetro’s GTW fleet.

Read More →
Rendering of an Alstom train in a VIA Rail Station
Technologyby Alex RomanSeptember 10, 2026

Biz Briefs: Alstom Lands Canadian Contract, LYT to Supply California TSP, and More

In METRO's latest installment, we take a look at recent news from Complete Coach Works, Beep, FlixBus, and more partnerships making headlines across the transportation sector.

Read More →
The CATS Gold Line in service with the city skyline in the background.
Railby Staff and News ReportsSeptember 3, 2026

CATS Gold Line Marks 5 Years of Service, 2.8M Passenger Trips

With a six-mile expansion planned, the Charlotte streetcar is positioned to connect more neighborhoods and major transit hubs across the region.

Read More →
Ad Loading...
Designing Stations Around the Passenger
RailSeptember 2, 2026

Why Simulating Pedestrian Movement Has Become Essential for Modern Rail Stations

Pedestrian microsimulation is helping rail planners identify bottlenecks, test station designs, and prepare complex transit hubs for growing passenger volumes.

Read More →
Amtrak Sunnyside Groundbreaking
Railby Staff and News ReportsSeptember 2, 2026

Amtrak Begins Major Construction at New York’s Sunnyside Yard

The new maintenance facility will support Amtrak’s Airo trainsets while improving maintenance efficiency and turnaround times in New York.

Read More →
O'Hare Flyer Rendering
Railby Staff and News ReportsAugust 27, 2026

Chicago Leaders Unveil Plans for O’Hare Airport Express Train

The privately developed project would offer a 15-minute trip between downtown and O’Hare’s Terminal 2, with trains operating every 15 minutes on a dedicated track. The service would use battery-electric trains and three existing freight rail rights-of-way.

Read More →
Ad Loading...
An OCTA coastal rail line train.
Railby Staff and News ReportsAugust 27, 2026

OCTA Maps Out 30-Year Strategy to Protect Coastal Rail Corridor

The draft feasibility report identifies strategies to protect the coastal rail line for decades as the agency continues near-term stabilization and sand placement efforts.

Read More →