Secretary Duffy: California High-Speed Rail Has “No Viable Path Forward”

Assemblywoman Macedo urges shift to water and wildfire investments

U.S. Transportation Secretary Sean Duffy has issued a federal report sharply criticizing the California High-Speed Rail Project, concluding that the multibillion-dollar effort has “no viable path forward.” In light of the findings, Central Valley Assemblywoman Alexandra M. Macedo is calling for the state to redirect its investment toward water infrastructure and wildfire prevention—two areas she describes as critical for safety and economic opportunity in her region.

“Secretary Sean Duffy confirmed what we have known all along – the California High-Speed Rail is a waste of taxpayer dollars,” said Macedo in a statement following the release.

The report outlines nine major findings regarding the California High-Speed Rail Authority (CHSRA), ranging from severe funding shortfalls to mismanagement and inflated ridership projections. Among the key takeaways:

• CHSRA has executed hundreds of millions of dollars in change orders, including $154 million for Construction Package 1 (CP1) in October 2023 and a combined $590 million in change orders for CP 2-3 over a span from late 2022 to mid-2024.
• The Authority has already missed deadlines tied to rolling stock procurement, a commitment outlined in its Full Funding Grant Agreement.
• There is currently a $7 billion funding gap for completing the initial segment of the project (the “Early Operating Segment”), with no clear or credible plan to secure additional funds.
• The project continues to rely heavily on unstable, non-federal funding sources such as California’s cap-and-trade program, increasing the financial risk.
• CHSRA has not allocated sufficient time or budget to electrify the full segment in time to support revenue service by 2033.
• The Authority’s contingency planning is inadequate to absorb expected delay claims from contractors.
• Ridership projections have been substantially overrepresented.
• The Authority lacks the internal capacity to deliver the project as promised within the timeline set forth in its federal agreements.

Assemblywoman Macedo, whose 33rd Assembly District includes Tulare, Kings, and Fresno Counties, emphasized the need to shift focus to more immediate infrastructure needs in the Central Valley. “It is time to cut our losses and reinvest those dollars in water infrastructure and wildfire prevention – lifesaving projects that can provide well-paying jobs for skilled workers in the Central Valley,” she said.

The report is expected to intensify ongoing debates in Sacramento and Washington over the future of the high-speed rail project and whether state and federal funding should continue to support its development.