U.S. Transportation Secretary Sean Duffy was in Los Angeles in February to announce that the administration is beginning a “compliance review” of the federal grants previously approved for the California High-Speed Rail Authority (CHSRA).
The review will include site visits and a close look at project activities and financial records.
Secretary Duffy spoke at L.A.’s Union Station surrounded by California lawmakers. “For too long, taxpayers have subsidized the massively over-budget and delayed California High-Speed Rail project,” he said. “President Trump is right that this project is in dire need of an investigation. That is why I am directing my staff to review and determine whether the CHSRA has followed through on the commitments it made to receive billions of dollars in federal funding. If not, I will have to consider whether that money could be given to deserving infrastructure projects elsewhere in the United States.”
Under President Joe Biden, the federal government approved approximately $4 billion more for the High-Speed Rail project, but if the review determines that California has not complied with the terms of previous grant agreements, the new money may not be released, and some funds already committed could potentially even be clawed back.
On February 20, the Federal Railroad Administration sent a letter notifying the High-Speed Rail Authority that it would be initiating a review of FRA-administered grants “including but not limited to” grant agreements designated FR-HSR-0118-12 and 69A36524521070FSPCA, to see if CHSRA is “complying with the requirements.”
One of the requirements for the FR-HSR-0118-12 grant is this: “The Grantee agrees to carry out the Project in a sound, economical, and efficient manner.”
We’re cooked!
