Government to announce $2.5 billion for high speed rail
By Lisa Lambert and John Crawley Lisa Lambert And John Crawley Oct 25, 2010
WASHINGTON (Reuters) – The government will soon distribute $2.5 billion for high speed
rail projects nationwide with California and Florida to receive the largest amounts, state and
congressional officials said on Monday.
The Transportation Department would not confirm details ahead of an expected
announcement later in the week, but the agency's secretary, Ray LaHood, notified members
of Congress about the awards earlier in the day.
California is set to receive $902 million, most of it going to projects in the Central Valley
region. Florida will receive $800 million.
"This is a great announcement for California that will create jobs at a time that we really need
them," said Senator Barbara Boxer in a statement. Boxer, a Democrat, is in a tight race for re-
election against Republican challenger Carly Fiorina.
The Golden State, which has the third highest unemployment rate in the country at 12.4
percent, has approved selling $10 billion bonds to build a rail line stretching north to south.
California already received $2.25 billion for rail development under the U.S. economic
stimulus plan approved by Congress last year.
The current round of federal funding will not come from the stimulus package, which set
aside $8 billion for building faster passenger trains. Instead, it is sourced to a separate grant
program.
In January, Florida received $1.25 billion from the stimulus plan to build a line from Orlando
to Tampa.
U.S. Rep. John Mica, who could take over chairmanship of the Transportation Committee if
Republicans win control of the House in the November 2 elections, said the project is in the
hands of voters who will decide whether to connect mass transit to the high-speed rail in a
special ballot.
"The Orlando-to-Tampa project will be the first new intercity passenger rail project built in
the U.S. in decades, and it must be financially viable and connect into regional fixed transit
systems," Mica said in a statement.
Senator Bill Nelson of Florida said that the state needs $300 million more from the federal
government to complete the $2.6 billion project, and "the remaining federal funds could
come next year."
Total grants are expected to total $2.5 billion, according to a Senate aide.
This includes $230 million for a line connecting Chicago and Iowa City, according to Iowa
Governor Chet Culver.
A project connecting New Haven, Connecticut, to Springfield, Massachusetts, will receive
$120 million, according to Connecticut Governor M. Jodi Rell.
Rep. John Dingell said his state of Michigan will receive $150 million and Virginia will
receive $45.4 million for preliminary engineering and environmental impact assessments for
a line connecting Richmond to Washington.
The remaining grant recipients were unclear but several other states including Missouri,
Washington and Oregon also are planning rail projects.
The U.S. government has long favored building up its interstate highway system over
creating high speed rail.
Companies such as Germany's Siemens and French engineering group Alstom that have
already established expertise in constructing the special train cars and rail lines are keenly
watching how the states progress with their development plans.