HomeUSCalifornia Postpones Decision on High-Speed Rail Project Amid Rising Concerns Over $231...

California Postpones Decision on High-Speed Rail Project Amid Rising Concerns Over $231 Billion Cost Estimate

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California’s ambitious bullet train project continues to face hurdles.

The High-Speed Rail Authority board in the state opted to delay a crucial vote on its much-anticipated business plan this Wednesday. This postponement comes in the wake of revelations that the project’s estimated costs have soared to an eye-watering $231 billion.

The Los Angeles-to-San Francisco train initiative has been criticized by lawmakers and budget analysts alike. They have labeled the project as incomplete, lacking transparency, and potentially illegal, prompting the authority to push the vote to next month’s agenda.

Earlier this week, during a tense session of the Senate Transportation Committee, the Legislative Analyst’s Office, a government oversight body, highlighted that the current plan fails to meet essential legal standards, particularly following the introduction of new station locations.

Ian Choudri, the CEO of the High-Speed Rail Authority, had assured lawmakers that additional details would be provided to help steer the project forward. However, by Wednesday, the necessary information and vital public feedback were still lacking, leading board Chairman Tom Richards to defer the vote to the following month.

Critics have said that the entire project needs to be scrapped.

“I’ve been saying this for years now, but this is the most wasteful government project in probably world history,” Republican state Sen. Tony Strickland told The Post. “It goes from a $33 billion projected estimate to the voters to go from LA to San Francisco. Now it’s $231 billion and climbing.”

The High-Speed Rail Authority estimates the train’s initial Central Valley segment will cost roughly $34.8 billion, while the broader “Phase 1” system will cost $126 billion after major modifications.

A few members of the authority’s board expressed exasperation over the project being delayed and contracts receiving such close scrutiny amid years of delays.

In a vote over two bids to install concrete troughs for electrical work — one costing nearly $57 million and another over $103 million — board director Anthony Williams suggested that Choudri’s hands were being tied by micromanagement.

Williams, an appointee of Gov. Gavin Newsom, said the CEO should not only be able to unilaterally approve change orders of up to $100 million, but also be able to sign contracts up to the same limit. Choudri is currently allowed to sign contracts up to $25 million, officials said in the meeting.

The idea floated by Williams comes as Newsom has supported legislation that would shield the cost of the train.

Board Director Henry Perea, of Fresno, immediately pushed back by acknowledging years of wasteful spending and delays under past leadership.

“I have complete confidence in our CEO and the vision that he’s laid out for this program, but have also been involved in this program from day one — absolutely day one,” Perea said. 

“I can tell you, because of the lack of oversight by this board, years back, we had significant financial issues that should not have occurred dealing with change orders and other things because of the lack of oversight with this board.”

Newsom’s office did not respond to requests for comment about the plan, while High-Speed Rail Authority officials defended its revisions.

“Through this innovative plan, California is advancing practical solutions to deliver major infrastructure more efficiently and move projects into service sooner, even as federal actions have introduced uncertainty, obstruction, and a lack of good-faith engagement,” officials said in an email to The Post.

A discussion on giving more spending powers to the CEO could be part of the broader discussion on the project plan in May.

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