Key Takeaways:
- California’s high-speed rail project has tripled in cost, from $40 billion to $128 billion.
- President Trump pulled $4 billion in federal funding, calling the project a historic example of cost overruns.
- Millions of dollars have been spent on unexpected things like graffiti removal, lobbyists, and animal habitats.
- Construction hasn’t started yet, with no clear completion date.
Audit Reveals Shocking Spending on High-Speed Rail
California’s high-speed rail project, once promising to connect Los Angeles and San Francisco by 2020, is now in shambles. The cost has skyrocketed to $128 billion, three times the original estimate. President Trump has slammed the project, calling it one of the worst examples of cost overruns in U.S. history.
State audits show that money meant for construction has been used for surprising things:
- Graffiti removal: The City of Fresno got $5 million to clean up graffiti.
- Lobbyists: A lobbying firm, Kadesh & Associates, received nearly $2 million to advise Congress on the project.
- Animal habitats: A company called Westervelt Ecological Services got $20 million to build new habitats for animals affected by the construction.
- Diversity training: $51,000 went to CPS HR Consulting for diversity, equity, and inclusion (DEI) training and meetings.
- News subscriptions: $177,000 was spent on Politico Pro subscriptions, a premium news service.
Construction Far Behind Schedule
The project was supposed to finish in 2020, but not a single track has been laid yet. The first part of the rail line, which was supposed to be done by 2033, is unlikely to meet that deadline, according to an inspector general report. Meanwhile, the California High-Speed Rail Authority spent $537 million on environmental services, including a 14-year process to write an environmental impact statement.
Why the Project Is Struggling
Gov. Gavin Newsom has pushed back against critics, saying, “At a certain point, you have audit fatigue. Audits for audits’ sake serve no one.” But the delays and overspending have left taxpayers frustrated.
The high-speed rail project isn’t the only transportation mess in California. In Santa Clara County, a planned rail station is 11 years behind schedule and $8 billion over budget. The county spent $173 million on rail cars that will now be used elsewhere for a decade, all at Santa Clara’s expense.
A Growing Pattern of Waste
California’s high-speed rail project is just one example of how taxpayer money can be mismanaged. If the project had been completed on time in 2020, many of these issues might have been avoided. Instead, the delays and cost overruns continue to grow, leaving Californians wondering where their money is going.
For now, the state’s high-speed rail remains a symbol of government spending gone wrong.
This article is part of the #WasteOfTheDay series, highlighting examples of government waste and misuse of taxpayer funds.