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2mo ago

Trump Administration Orders Audit of California High-Speed Rail Project

The $106 billion project faces federal scrutiny over delays, cost overruns, and potential mismanagement after nearly two decades of limited progress.

A full-scale mock-up of a high-speed train, is displayed at the Capitol in Sacramento, Calif., on Feb. 26, 2015. The California High-Speed Rail Authority's biennial business plan, released Tuesday, Feb. 8, 2022, shows the estimated cost of the project rising by about $5 billion, compared to the 2020 plan, up to as much as $105 billion. (AP Photo/Rich Pedroncelli, File)
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Overview

  • Transportation Secretary Sean Duffy announced a federal audit of California's high-speed rail project, citing extensive delays and cost overruns.
  • The rail project, initially projected to cost $33 billion and be completed by 2020, now has an estimated price tag of $106 billion with little visible progress.
  • Inspector General Benjamin Belnap's report highlights disputes with contractors and calls for changes in state law to expedite construction in the Central Valley.
  • Federal funding of $4 billion is under review, with potential legal action to reclaim funds if mismanagement or fraud is uncovered.
  • California Governor Gavin Newsom defends the project, emphasizing job creation and infrastructure progress, while critics label it a costly 'boondoggle.'