U.S. DOT Redirects $1.195 Billion in High-Speed Rail Funds
U.S. Transportation Secretary Ray LaHood says the department will redirect $1.195 billion in high-speed rail funds originally designated for Wisconsin and Ohio to California and other states.
California is in line to collect an additional $624 million, the largest amount of the 14 other states that are moving ahead with HSR projects.
Wisconsin has suspended work under its existing high-speed rail agreement and the incoming governors in Wisconsin and Ohio have both indicated that they will not move forward to use high-speed rail money received under the American Recovery and Reinvestment Act (ARRA), says LaHood.
�This is yet another vote of confidence that California�s project is on the right track toward creating tens of thousands of jobs for our state and constructing the nation�s first true high-speed rail system,� says Roelof van Ark, CEO of the California High-Speed Rail Authority.
The funding is anticipated to further construction in the Central Valley toward another urban center. Initial construction is slated to begin in 2012.
The additional ARRA funding was redistributed after nearly $1.2 billion was returned from other states.
California�s project has received the most federal funding of any state in the nation, totaling more than $3.1 billion in 2010. �High-speed rail will modernize America�s valuable transportation network, while reinvigorating the manufacturing sector and putting people back to work in good-paying jobs,� says LaHood. �I am pleased that so many other states are enthusiastic about the additional support they are receiving to help bring America�s high-speed rail network to life.�
The ARRA included $8 billion to launch a national high-speed rail program that will modernize America�s transportation network, spur economic development domestically and keep the U.S. competitive with other leading nations, says the DOT. High-speed rail grants announced under the act can be used only for high-speed rail projects and not for other transportation projects.
Last year, the Obama Administration received a commitment from 30 domestic and foreign rail manufacturers to establish or expand their base of operations in the U.S. if selected for contracts building America�s high-speed rail network. These rail manufacturers and suppliers committed to not only locate in the U.S., but to ensure high-speed rail projects are built by American workers with American-made supplies. To deliver maximum economic benefits to American taxpayers, the Administration�s high-speed rail program also includes a 100% �Buy American� requirement.
Under the ARRA, the Federal Railroad Administration originally announced $810 million for Wisconsin�s Milwaukee-Madison corridor and $400 million for Ohio�s Cincinnati-Columbus-Cleveland �3C� route. The Federal Railroad Administration will redirect $810 million from Wisconsin and $385 million from Ohio, and will work with these states to determine whether they have already spent money under their contracts that should be reimbursed.
The $1.195 billion originally designated for those high-speed rail projects in Wisconsin and Ohio will now be used to support projects in the following states:
| • California: up to $624 million |
• Florida: up to $342.3 million
• Washington State: up to $161.5 million
• Illinois: up to $42.3 million
• New York: up to $7.3 million
• Maine: up to $3.3 million
• Massachusetts: up to $2.8 million
• Vermont: up to $2.7 million
• Missouri up to $2.2 million
• Wisconsin: up to $2 million for the Hiawatha line
• Oregon: up to $1.6 million
• North Carolina: up to $1.5 million
• Iowa: up to $309,080
• Indiana: up to $364,980