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

LOS ANGELES - Republican lawmakers, including U.S. Transportation Secretary Sean Duffy, blasted California's "failing" high-speed rail project on Thursday, calling it a "waste of taxpayers' money" after revealing nearly $16 billion has already been spent on the project that was scheduled to be completed in 2020.

The entire San Francisco to Los Angeles project was initially supposed to cost $33 billion. The latest estimate for the entire project is now $106 billion — more than three times the original cost estimate.

Now, the federal government will conduct a compliance review to determine how federal assistance has been used on the state's long-delayed project.

‘High-speed rail disaster’

What we know:

At a press conference from Los Angeles' Union Station, Duffy - who was appointed by President Donald Trump - called out Gov. Gavin Newsom's "gross mismanagement" of the project and said they are reassessing whether the project will continue to be funded.

"It was going to be done by 2020, and it was going to cost $33 billion… and people were excited," Duffy said. "Where are we today? Well, today, we are severely - no pun intended - off track."

This comes after Trump recently criticized the project, vowing to investigate what he called the "worst managed project" he's ever seen.

PREVIOUS COVERAGE: Trump investigating California's high-speed rail project

"One of the things I want to investigate rapidly, because I've never seen anything to this extent—the train that's being built between Los Angeles and San Francisco is the worst managed project I think I've ever seen and I've seen some of the worst," Trump said.

California voters approved a bond measure for the rail project in 2008.

"The federal government has invested $2.7 billion in this project and California has invested the rest. Joe Biden has promised another $4 billion. The problem is, California is still short $6.5 billion. California doesn't have the money to complete the project, even with the federal promises that were made by the last administration," Duffy added.

He went on to criticize Newsom's lack of leadership on the project, later deferring questions from reporters to the governor.

"What should you do with this project? Why is it costing so much money? What's going on? Those are questions that should be asked by the media. The public should know there is no timeframe to get a high-speed rail from LA to San Francisco. You should know that. And that's the decision you all have to make as a state," Duffy said.

High Speed Rail Authority speaks out 

What they're saying:

Authority CEO Ian Choudri released the following statement, "We welcome this investigation and the opportunity to work with our federal partners. California's high-speed rail is 171 miles under active construction, with over 50 major structures completed. 14,700 jobs created, and more than 880 small businesses engaged." 

Uncertain future

What we don't know:

The fate of the high-speed rail project remains unclear, as Duffy said the transportation agency will be initiating an investigation into where exactly the funds have gone and if the project should still continue to be funded by the federal government.

Cost overruns and delays

The backstory:

Voters in 2008 approved a bond for the project, eventually aimed at connecting Los Angeles to San Francisco.

Eight years after they approved funding for it, construction remained years behind schedule and legal, financial and logistical delays plagued the project.

In the second phase of a court challenge filed in 2011, attorneys for a group of Central Valley farmers argued in Sacramento County Superior Court that the state can’t keep the promises it made to voters in 2008 about travel times and system costs. Voters authorized selling $9.9 billion in bonds for the project, which was estimated to cost $40 billion. At that time, officials predicted the project would not be completed until "at least 2022."

In 2019, the Trump administration canceled nearly $1 billion in federal money, which was restored in 2021 after the U.S. Department of Transportation finalized settlement negotiations.

Rail officials have said they were poised to make that deadline and that revoking the funds was premature.

In 2021, officials said the first leg of rideable track, connecting two cities in the Central Valley, wouldn't start until at least 2029, and the project’s costs will have ballooned to $98 billion.

The project’s price tag has steadily risen since 2008 when the total cost was pegged at $40 billion. In the years since, the costs have kept climbing amid struggles to obtain the necessary land and other delays.

‘Waste of taxpayers’ money'

What they're saying:

Several speakers in attendance echoed the Trump administration's narrative of "common sense spending in California."

Former U.S. Rep. Doug LaMalfa spoke about the "battle since 2008," mentioning that the costs of the project continued to increase year-over-year.

"This will never work. It was a nice thought. It was a nice idea, but we need to go back to the drawing board and use, as the [transportation] secretary said, the American tax dollars."

Former U.S. Rep. Michelle Park Steel compared the project to the transportation system of Japan, where she was raised.

"It works in Japan because you can get from the public transportation and you can hop on, you can go to the city. For this one, it cost him $128 billion, $140 billion? Nowhere to nowhere. And you know what? We don't need this kind of wasting taxpayers' money. We really have to stop it," she said.

Rep. Kevin Kiley called the project "the worst public infrastructure failure in U.S. history," to a crowd of protesters who immediately began to "boo" and chant "Build the rail!"

"This ill-fated project is a blight on our landscape and an embarrassment to our state. But it's more than that. It symbolizes the decline of modern California under the current leadership. It showcases political ineptitude on an epic scale. This doomed project represents the failure of planning and governance, a vision and leadership of transparency and accountability, of competence and common sense that have turned the greatest state in the country into the most popular state to leave," he said.

"Once we end this project, it will be a new beginning for California… and President Trump has said there can be no Golden Age without the Golden State. And today, we're taking a major step forward towards a goal to revival for all Californians."

Sen. Shannon Grove referred to the "disaster" as "Railhenge."

"In Europe, they have Stonehenge, and we will be forever known as Railhenge," she said.

"The bottom line is, the people of the state of California were lied to. They were told this is a $33 billion project and that we would be on a high-speed train from San Francisco to Los Angeles and back in 2 hours and 25 minutes. There is not any track available."

Protesters chant ‘Build the rail!’

The other side:

Dozens of protesters gathered outside where the briefing took place and were vocal about their thoughts on what was being said. The crowd could be heard chanting "Duffy go home!" and "Build the rail!" as Republican officials answered questions from reporters.

"I want to address the protesters for a moment. If I could, I think they were chanting, ‘build a rail.’ It's been 17 years, and $16 billion, and no rail has been built. So, if you want to go protest somewhere, if you want to shout at someone, go to the governor's mansion, go talk to Democrats in the legislature who have brought us this crappy project," Duffy said.

He added that protesters "should all be at the steps of Gavin Newsom's mansion" if they wanted answers about the future of the project.

"This is not our problem. This is a state problem. That should be it should have been resolved years ago. It's 2025. It was going to be completed in 2020. And we're nowhere. This is what we got," Duffy said.

As "angry" protesters further continued to yell and disrupt the meeting, Duffy blamed Democrats, Newsom, and the High Speed Rail Authority.

"No one here was responsible for wasting your money. No one here. And they're yelling at us. Chanting at us because they're angry. They want a rail project, but they should go somewhere else. To the people who are making the decisions that have wasted your money, that have flushed it down a toilet," Duffy said.

Investigation initiated 

What's next:

Duffy said he will direct the Federal Railroad Administration referee to begin a review of funding to the California High Speed Rail Authority, which will focus on $4 billion that was set aside for two construction projects. Duffy added this will help determine whether billions of dollars in taxpayer money should remain committed to the high-speed rail project. They are also investigating if the CHSRA complied with the agreements signed with the federal government.

"There is no timeline in which you're going to have high-speed rail that goes from LA to San Francisco. That timeline does not exist, and the estimates are incredibly rough, on the dollar front," Duffy added.

"We actually have to do an investigation to look at how has that money been used? Where was it used? Who got this money? Where did all this money go? And we have a right to know… $70 billion is a lot of money and this is what you have for it. We're going to hold people accountable."

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