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Obama Doubles Down on High-Speed Rail Investments in California and Florida

  • December 10, 2010
  • Mark Reutter

The Obama administration yesterday called the bluff of two newly elected Republican governors and regained control of its high-speed rail program. Confronted by Governor-elects Scott Walker of Wisconsin and John Kasich of Ohio, who vowed to kill the administration’s signature high-speed transportation initiative in their states when they take office next month, U.S. Transportation Secretary Ray LaHood preemptively yanked $1.195 billion not yet spent by the states.

This is good news and something we had urged. It shows resolve by the administration against politically motivated obstructionism. A backlash has been growing in Wisconsin against Walker’s anti-rail rhetoric. Now voters can mull over how he “saved” them money by destroying thousands of construction jobs that the proposed Milwaukee-Madison rail line would have created. Plus Wisconsin and Ohio may owe the federal government upwards of $25 million already spent on rail planning.

The administration said it would redirect the bulk of the freed funds to California and Florida, assuring that these truly transformative projects can move forward even if a Republican House blocks rail funds in the upcoming federal budget.

California will receive $624 million of the redirected funds, adding to the $3 billion previously awarded toward the construction of a 220-mph railway between Los Angeles and San Francisco. Combined with matching state funds from a voter-approved bond referendum, California now has $7 billion committed to the project.

Both outgoing Republican governor Arnold Schwarzenegger and incoming Democratic governor Jerry Brown are strong supporters of the rail project, despite California’s current budget woes. Last week, the California High Speed Rail Authority approved construction of the first leg of the line, a 65-mile stretch in the Central Valley running through Fresno. The redirected funds are likely to enable the authority to extend construction to Bakersfield.

Florida will get $342 million on top of the $2.05 billion previously allocated to build a high-speed train on a new right of way between Orlando and Tampa.

Incoming Republican governor Rick Scott initially opposed the line, but has softened his position, saying he is in favor of high-speed rail so long as Florida taxpayers don’t have to foot the bill. Yesterday’s allocation basically closes the funding gap. It strengthens LaHood’s prediction that the Florida project will break ground next year.

Of the remaining $230 million redirected by LaHood, the state of Washington will receive $162 million to rebuild trackage and signaling on an existing Amtrak route between Portland and Seattle. The other major recipient ($42 million) was Illinois, whose re-elected Democratic Governor Pat Quinn is an ardent rail advocate.

Focusing federal funds on a few core projects is a smart strategy as the administration realizes that additional rail allocations in a Republican-controlled House are far from certain. The redirected rail funds give the administration breathing room to keep the program afloat at least through the 2112 election cycle.

Rep. John Mica (R-Fla.), the likely chair the House Transportation and Infrastructure Committee in January, has been critical of rail projects – such as the now-rescinded Wisconsin and Ohio lines – where trains would only reach maximum speeds of 110 mph.

Mica has repeatedly said he favors speeds of over 150 mph and wants private partners to help fund the projects. Earlier this week, a consortium led by Central Japan Railway said it may offer $210 million in loans to help pay for the Tampa-Orlando line if its high-speed equipment was selected by the state.

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