California's $2.25bn high-speed rail fund

California's proposed rail service

In what would appear to be a major victory for the state of California and their plans to fund a high-speed train line from San Diego to Sacramento, the Golden State has received $2.25 billion, the largest amount for any state, in federal economic stimulus funds to proceed with the long-discussed project.

The idea of a high-speed rail service in California has long been mooted with its supporters saying how it would be a massive boost to the state's economy whilst helping cut down on car usage. The one thing holding it back has been cost with projections for the system lying anywhere between $40-45 billion.

The funds from the Obama administration plan total $8 billion and are to be spread across 13 rail corridors, including a Midwest line from Chicago to St. Louis and one in Florida running from Tampa to Orlando.

The money, whilst important to the project, comes at a time when the US deficit is at its highest, however many believe the rail projects will "lay the groundwork for a nationwide infrastructure expansion that will spur economic growth in communities across the country, provide faster and more energy-efficient means of travel, and establish a new industry in the US that provides stable, well-paid jobs."

Wide support

Previously, US Transportation Secretary Ray LaHood has said that a high-speed rail service was the way to go, despite critics saying the scheme would be outdated in a few years and any money would be better spent on cheaper transportation projects.

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

Today however, Mehdi Morshed, executive director of the California High-Speed Rail Authority, said he was "delighted" by the news, and noted that California had pledged to match federal funds dollar for dollar.

Although the state had applied for $4.7 billion of the $8-billion federal pot, it was inevitable that political pressure would lead to the money being spread across a broad geographical region rather than giving a majority to a single state.

Despite the fact that California is further along in its plans then most states and, according to Governor Schwarzenegger, the state sends more money to Washington than it gets in return, the project is gaining traction and if all goes to plan could come to fruition.

Meanwhile, President Obama is travelling to Florida to announce the awarding of $2.5 billion to the first phase of their high-speed rail system.Florida has already acquired a dedicated right-of-way along the I-4 corridor where the rail line will go. This first phase of rail development will include stops at the Orlando Airport, in Orlando, at Disney, Lakeland and then Tampa.

Florida anticipates the first phase of their rail line will cost $3.5 billion, and they are currently raising money from private investors to cover the remaining billion after they receive the stimulus funding. Construction is set to be completed and trains running by 2014.

Image from Inhabitat.com

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