The Biden administration announced this week that it would give $6.1 billion for two high-speed electric rail projects in the US West. California and Nevada will receive funding for long-anticipated rail routes, marking a renewed commitment to high-speed rail as a sustainable mode of transportation.
The federal government will allocate $3 billion for a privately owned high-speed rail connection between Las Vegas and the Los Angeles area, and an additional $3.1 billion for an initial segment of California’s publicly funded high-speed rail project, aiming to link Los Angeles and San Francisco.
While the funding represents a tiny amount relative to the total project cost — the project cost has ballooned to over $120 billion — it signifies the administration’s push towards embracing high-speed rail, a widely adopted mode of transit elsewhere in the world. Brian Kelly, CEO of the California High-Speed Rail Authority said on Fortune that the allocation is a “great leap forward.”
The California project, initially proposed in 2008, aims to create a 500-mile route between Los Angeles and San Francisco with speeds of up to 220 mph. The current focus is on a 119-mile stretch connecting Merced, Fresno, and Bakersfield, with the newly allocated $3.1 billion earmarked for this segment.
The federal funding comes as a relief, addressing a significant funding gap for the Central Valley route. Kelly emphasized that additional support from both federal and state governments would be sought in the future. The project only has $25 billion in identified funding.
The second project, a high-speed rail link between Las Vegas and Los Angeles, has been discussed for decades. With all necessary approvals secured, including right-of-way and environmental clearances, and labor agreements in place, the project is poised to commence. While no start date has been announced, there are hopes that electric-powered trains could be operational by the time Los Angeles hosts the Summer Olympics in 2028.
Nevada US Senator Jacky Rosen highlighted the potential benefits, stating that the high-speed rail connection would create jobs, boost tourism, and alleviate traffic congestion between Las Vegas and Southern California. The initiative is expected to be modeled after Florida-based Brightline’s successful intercity passenger railroad, offering speeds of up to 125 mph.
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