CALIFORNIA High Speed Rail Authority (CHSRA) has come out fighting in its rebuttal of the proposed termination of two federal funding agreements for the under-construction 275km high-speed line.
In a strongly-worded letter to acting FRA administrator, Drew Feeley, CHSRA CEO, Ian Choudri, says that the conclusions of a compliance review of the project published by FRA on June 4 are “based on an inaccurate, often outright misleading, presentation of the evidence.” He calls on FRA to withdraw its proposal to terminate the two federal grants totalling $US 4bn.
The FRA review says that CHSRA is in default of the terms of grants, accusing the authority of missing deadlines, budget shortfalls and over-representation of projected ridership. FRA also identifies what it says is a trail of project delays, mismanagement, waste, and skyrocketing costs. It says that CHSRA will be unable to deliver the early operating segment (EOS) within the agreed schedule and budget.
“Distorts data”
Choudri’s letter refutes these claims. He says that “the FRA distorts data that the authority has furnished to the FRA, includes citations to reports that do not support its conclusions, and employs opaque and disingenuous methodologies.”
The letter also address what Choudri describes as the “misleading claim” that CHSRA has made “minimal progress to advance construction.” Several photographs of key structures on the route, which are, or are close to completion, are included within the letter, and Choudri says that, contrary to the FRA’s claim, the authority is on track to complete the EOS between Merced and Bakersfield by 2033.
CHSRA also confirmed in a statement that the entire 275km section is either in design or under construction, with approximately 112km of alignment complete along with 54 structures, with 30 more currently under construction.
Core findings
The letter goes on to address each of the FRA’s core findings, including an alleged $US 7bn funding gap to meet the estimated $US 32.7-36.3bn cost of the EOS.
With $US 28.2bn secured, Choudri says the gap will be filled by state funds, notably $US 1bn a year pledged by California governor Gavin Newsom using funds from the state’s greenhouse gas emissions cap and trade programme up to 2040. The letter dismisses claims that using that this agreement presents a significant risk to the project. It adds that the authority “is well-positioned to obtain additional funding, potentially including from private sources” and that claims of insufficient contingencies for contractors are inaccurate.
Similarly, the letter addresses accusations that CHSRA missed the deadline for finalising rolling stock procurement for the EOS. CHSRA reveals that it is modifying the technical requirements for the initial fleet of six trains, which it says will result in faster and less costly procurement.
Likewise, CHSRA dismisses claims that it does not have sufficient time to electrify the line and says that FRA criticism of ridership projections is misleading. Suggestions that CHSRA has insufficient capacity to manage the project are also dismissed in the context of FRA approving CHSRA’s Project Management Plan on March 13 2025.
Choudri concluded his response by calling on the agency to withdraw its proposed termination.
“I hope that FRA and the authority can move forward to work together to support this programme - a project with a big future and great promise to better the lives of Californians and spur economic growth in the state and across the nation,” he says.
What’s next?
After submitting its initial response within seven days of receiving the FRA report and accompanying letter, and challenging its verdict, CHSRA is now expected to submit supporting documentation within 30 days. Any proposed corrective action is due 30 days from the date of its initial response.
FRA says that if it makes a final determination to terminate the agreements, it will reallocate unspent federal funds and may also reassess other federal funding awards to CHSRA.
CHSRA says it will fully address “and correct the record” in its formal response to the FRA’s notice.
For detailed data on high-speed projects from around the world, subscribe to IRJ Pro.
