Obama Administration Invests $2.35 Billion in High-Speed Rail Stimulus Funding in California

President Barack Obama and Vice President Joe Biden today announced that the U.S. Department of Transportation is awarding $8 billion to states across the country to develop America’s first nationwide program of high-speed intercity passenger rail service.

More than a quarter of the funding is going to California, which is slated to receive $2.35 billion — more than any other state — for its planned project to connect Los Angeles to San Francisco and points in between with trains running up to 220 miles per hour. TheTransbay Transit Center in San Francisco is in line for $400 million of that money. The facility will replace the outdated Transbay Terminal and serve as the S.F. hub for the high-speed rail line.

Funded by the American Recovery and Reinvestment Act (ARRA), these dollars represent a historic investment in the country’s transportation infrastructure, and will help create jobs and transform travel in America.

"Through the Recovery Act, we are making the largest investment in infrastructure since the Interstate Highway System was created, putting Americans to work rebuilding our roads, bridges and waterways for the future," said President Obama.

"Today’s announcement is fantastic news for job creation in California,” said California Governor Schwarzenegger. “By showing leadership and including high-speed irail funding in the Recovery Act, the Obama Administration is strongly supporting California’s high-speed rail project, which is the largest public works project in the nation and will create jobs, save billions of pounds of greenhouse gases and will be the first true-high speed rail system to break ground in the nation.”

Phase I of California's system calls for a 520-mile system connecting Anaheim and Los Angeles through the Central Valley to San Francisco by 2020; Phase II would extend the system north to Sacramento and south to San Diego by 2026. When the state's system is fully built it will stretch close to 800 miles, from Sacramento to San Diego.

According to the governor, the fact that Californians voted to put $9.95 billion in bond funding toward the state's high-speed rail system was a major influence in Obama Administration's funding decision. "No other state in the nation brings this level of investment to the table," his press materialsnote. California voters approved Proposition 1A, the $9.95 million high-speed rail bond, in November 2008.

"High-speed rail corridors will offer competitive door-to-door trip times. From Los Angeles to San Francisco, a 2-hour 40-minute comfortable ride from city center to city center will replace a six-hour trek of fighting traffic to get out of one downtown and fighting traffic to get into another," U.S. Transportation Secretary Ray LaHood noted in a blog post.

MTC played a central role in crafting the Bay Area's portion of California's high-speed rail proposal. The grant program was highly competitive: Applicants submitted over $55 billion in project proposals for the initial $8 billion in funds awarded today. "The states that were most successful were the states that have been carefully planning and investing significant state resources in passenger rail for the past decade: California, Wisconsin, Illinois and North Carolina," LaHood said in a blog post, noting that Florida is also in the mix because of good planning.

Details on California Grants

Calfiornia rail projects identified in the president's plan include:

• $2.25 billion for work that will advance a high-speed rail line connecting L.A. to San Francisco and points in between: Work will include purchasing right-of-way, constructing track, signaling systems and stations, and completing environmental reviews and engineering documents .Segments singled out for funding include Los Angeles to Anaheim; San Francisco to San Jose; Fresno to Bakersfield; and Merced to Fresno. U.S. Transportation Secretary Ray LaHood has been quoted as saying San Francisco's Transbay Transit Center is in line for $400 million of this funding. The money would go toward building an underground station at the site of the new terminal, and comes on top of a $171 million federal loan for the project announced a few days ago.

Three existing intercity passenger rail routes in California will also be enhanced. These upgraded routes will ultimately connect to the new high-speed service, achieving the president’s vision for regional rail networks.

• $51 million in upgrades for the Surfliner route connecting San Diego to L.A. and San Luis Obispo: Construction of new tracks and crossovers that will improve on-time performance and ultimately allow for top speeds of 110 mph on the segment connecting Los Angeles and San Diego.
• $29.2 million for the Capitols line that connects the Bay Area with Sacramento: Work will include completion of a track relocation project in Sacramento, a new crossover near Davis and upgrades to San Jose’s Diridon Station, all contributing to fewer delays and faster travel times.
• $20 million for San Joaquin Corridor (Sacramento/Oakland - Bakersfield): Upgrades to the San Joaquin’s train sets will be funded, including the addition of more storage space for bicycles and an overhaul of the trains’ emissions control equipment to reduce pollution.