NEWS RELEASE: California and Federal Government Reach Agreement – Nearly $1 Billion in Funding Returned to the High-Speed Rail Project

June 11, 2021

SACRAMENTO, Calif. – Yesterday, the U.S. Department of Transportation and the State of California finalized settlement negotiations to restore nearly a billion dollars in federal grant funding to California’s High-Speed Rail project. The action comes after months of negotiations to restore funding that was previously rescinded by the Trump Administration in 2019.

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Governor Newsom | Speaker Pelosi | CEO Kelly | FRA Dep. Admin. Bose

“Tonight’s action by the federal government is further proof that California and the Biden-Harris Administration share a common vision – clean, electrified transportation that will serve generations to come. Restoring nearly $929 million in grant funding back to California’s High-Speed Rail project will continue to spur job creation, advance the project and move the state one step closer to getting trains running in California as soon as possible. We thank the Biden-Harris Administration and Secretary Buttigieg for their partnership on this important step forward.”

– Governor Gavin Newsom

“The Biden Administration’s restoration of nearly $1 billion for California’s high-speed rail is great news for our state and our nation.  This vote of confidence and restored close working relationship between the Department and the Authority will keep this transformative project moving down the track – ensuring California can continue to lead the way forward in creating jobs, promoting commerce, connecting communities, and protecting our planet.”

“This development was made possible because of the strong commitment of the Biden Administration to ambitious, jobs-creating investments in infrastructure, and to state, local and labor leaders across California. The announcement also comes as House Democrats make progress under Chairman Peter DeFazio on a robust surface and rail reauthorization bill, which includes strong funding for intercity and high-speed passenger rail.”

“Democrats are committing to bold, historic infrastructure investments that advance prosperity, opportunity and justice for all in our country.”

– Speaker Nancy Pelosi

“With this settlement, it’s clear we once again have a strong federal partner on this challenging but transformative project.  We appreciate FRA’s expression of confidence that we are getting this project on the right track. Let’s continue the work of creating jobs and building the nation’s first truly high-speed rail project right here in California.”

– Authority CEO Brian Kelly

“The U.S. Department of Transportation and the State of California have reached a final settlement to resolve the litigation over the Federal Railroad Administration’s (FRA) termination of its Fiscal Year 2010 Cooperative Agreement with the California High-Speed Rail Authority (CHSRA). This settlement agreement follows intensive negotiations between the parties and reflects the Federal government’s ongoing partnership in the development of high-speed rail. It also underscores CHSRA’s commitment to deliver this transformative infrastructure project. The Department is excited about reestablishing this important relationship with the State of California and is committed to fulfilling its oversight responsibilities. This settlement is an important step in advancing an economically transformational project in California.”

– FRA Deputy Administrator Amit Bose

You can read the settlement agreement on the Authority’s website here.

The California High-Speed Rail project is under construction along 119 miles in the Central Valley with more than 35 active construction sites and an average of 1,100 workers a day on the various job sites. Restoration of this grant funding will aid the Authority in their effort to complete the initial operating segment of the nation’s first high-speed rail system.