Biden Administration provides big boost for high-speed rail in California
A much delayed high-speed rail project in California got a major boost when the Biden administration announced it is restoring some $929 million dollars for the project that had been slashed under the former administration.
According to Reuters, the funding which had been withheld during the Trump administration will be restored within three days to several parties which include the state of California, the California High-Speed Rail Authority and the U.S. Transportation Department. California had sued the federal government when the funding was slashed by President Trump. It's part of a legal settlement. The original funds had been issued by President Obama but hadn't been spent.
Sign up to receive the daily TPG newsletter for more travel news!
High praise for funding settlement
In a statement, California Gov. Gavin Newsom said the funding boost, "will continue to spur job creation, advance the project and move the state one step closer to getting trains running in California as soon as possible."
Henry Harteveldt, a travel industry analyst and president of Atmosphere Research, told TPG, "The Biden administration's decision to support investment in California's high-speed rail project is a positive move for the future of the state's inter-city transportation."
Related: Bullet trains in America?
Federal Railroad Administration deputy administrator Amit Bose called it, "an economically transformational project in California," in a statement released to the media.
House Speaker Nancy Pelosi, in a statement, said:
"The Biden Administration's restoration of nearly $1 billion for California's high-speed rail is great news for our state and our nation. This vote of confidence and restored close working relationship between the Department and the Authority will keep this transformative project moving down the track – ensuring California can continue to lead the way forward in creating jobs, promoting commerce, connecting communities, and protecting our planet."
The Rocky road to high-speed rail
The path for California bullet trains has been bumpy, to say the least.

Not long after he was elected, governor Newsom scaled back plans for the high-speed rail project that was originally envisioned as a European-style, 800-mile high-speed train line connecting Los Angeles and San Francisco. At the time, Newsom said, "Let's be real, the current project as planned would cost too much and, respectfully, take too long. There's been too little oversight and not enough transparency."
The current construction is on a 120- to 160-mile stretch of train in the Central Valley connecting Bakersfield and Merced.
The line was imagined back in 2008 as a three-hour train trip between LA and San Francisco to be completed by 2029 at a cost of $32 billion. In fact, California voters approved a $10 billion bond to fund construction. Planners are hopeful the original vision of a line connecting Los Angeles to San Francisco will eventually be realized.
In the meantime, legal, political and environmental concerns have plagued the project, delaying construction and leading to the grand vision being scaled back dramatically. Costs have soared with a 2018 price tag projected at $77 billion. The current plans call for the rail line to be finished in the 2030s at a cost of as much as $99.8 billion.
However, The project's business plan suggests that a 500-mile section will be approved by 2023.
Related: CA scales back plans for high-speed rail
Harteveldt told me, "Some California highways are choking with traffic. High-speed inter-city rail has the potential to remove cars from the roads and possibly reduce some short-haul flying within the state as well. But, it's critical the authority working on the high-speed rail project improve its fiscal management and discipline. This project's costs have skyrocketed, which is completely unacceptable."
Still, the restored funding is great news for the project's prospects, and there's more good news that could give the plan a boost.
Related: Amtrak's new Acela high-speed trains to launch 2021
Other rail developments
Brightline has said it's working on a high-speed line between Los Angeles and Las Vegas. That line could eventually connect to the new Central Valley line, potentially feeding traffic from Los Angeles or Las Vegas. Harteveldt said, "It's a missed opportunity if the two lines do not connect. Both organizations' planners should examine this before it's too late, and explore cost-effective strategies for the two lines to connect. Otherwise, they will leave money on the table."

The company says groundbreaking on the tracks for the 170-mile route between Vegas and Victorville, California will begin later this year.

Related: Biden's big infrastructure push
Biden's infrastructure push
The Biden White House is trying to push through many, long-stalled infrastructure projects. President Biden is a huge train enthusiast, with his presidential campaign saying last year they want "to spark the second great rail revolution." President Biden already proposed a $2 trillion infrastructure plan that is currently working its way through Congress.
Related: Transportation Secretary says, "bold action on travel underway"
Meanwhile, Amtrak is rolling out new high-speed Acela train sets.

Featured conceptual rendering of a California high-speed train passing through the Pacheco Pass courtesy of the California High-Speed Rail Authority.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.


