$8 billion high-speed rail funds to be spent?

In November 2008, voters passed a bond measure, which approved $9.95 billion to fund a high-speed train line from San Diego to Sacramento. On top of this, a few months later, as part of the stimulus package, Congress dedicated $8 billion to pay for high-speed rail projects across the country... however, that $8 billion has still yet to be spent and the Californian high-speed line still has yet to begin construction.

Today though, US transportation secretary Ray LaHood said that the recipient of the funds will be announced in January, leading to speculation that the proposed San Francisco-to-Los Angeles route could finally get underway.

Speaking to magazine editors at the Hearst Tower, LaHood said, "People want this. They come back from Europe or Asia, and people scratch their heads and say, why don't we have high-speed trains here?"

Affordable speed?

In the shadow of the recession, the answer has been simple - cost. The cost for the Californian high speed rail system is estimated to cost anywhere between $40-45 billion. Even with state bonds covering almost a quarter of the cost, project planners are relying on federal money and private capital for the rest - and so far, no private investors have materialized.

The authority is applying for $4.7 billion of the $8-billion federal pot, yet there will be heavy political pressure to spread the money across a broad geographical region rather than giving so much to a single state.

This was put to LaHood, about whether the money could be better spent on cheaper transportation projects, but the secretary was defiant on the subject dubbing it a 'load of baloney'.

Concerns that any high-speed rail project would be outdated in a few years was also dismissed with LaHood citing other countries that have invested in the transport system.

"Spain and other countries have made huge investments in high-speed rail. They really get this, and I think we get it, too," he said.

He added that while the $8 billion will be amplified by private-public partnerships and regional allocations, Congress plans to kick in $2 billion or more each year on high-speed-rail initiatives.

Perhaps there is hope for the US's high-speed rail ambitions.

Relevant articles:

Could a Californian high speed rail service bolster the state economy? | US rail system demands investment | Radiator roads

Like this article? Get the RSS feed: