The cost of an under-construction high-speed rail line linking Las Vegas to Southern California has increased from $16 billion to $21.5 billion, according to documents published by the Department of Transportation.
According to the DOT, Brightline West, the private company behind the plan, has requested a $6 billion loan from the federal government to help fund the project.
Brightline West declined to comment when contacted by Newsweek. The Department of Transportation was also contacted via email on Thursday outside of regular office hours.
Why It Matters
Unlike Western Europe, Japan, China, and the United States do not have any operational high-speed rail lines, although two are currently under construction: The Brightline West line and the California High-Speed Rail Project, which aims to link Los Angeles and San Francisco.
However, since returning to the White House, the Trump administration has cut $4 billion in funding for the California high-speed rail project, arguing its spiraling cost can no longer be justified, and has also pulled $63.9 million from a proposed line linking Dallas and Houston.
What To Know
The loan request published by the DOT states that the Brightline West project is now estimated to cost $21.5 billion. This is up over 30 percent from the previous estimate of $16 billion.
Bloomberg reported that Brightline West hopes the federal loan will provide funding that was initially intended to come from a $6 billion bank facility. It also hopes to raise $5.5 billion via an increase in equity.
Mike Reininger, Brightline West’s CEO, has previously attributed rising costs of the Las Vegas to California line to increased raw material and labor costs.
In February, Transportation Secretary Sean Duffy praised Brightline West’s Las Vegas to California plan, describing it as “impressive.” He contrasted this with the “slow progress” of the California High-Speed Rail Authority, noting the Los Angeles to San Francisco line had seen its estimated cost surge from $33 billion to $106 billion.
The company behind Brightline West also built the Brightline intercity rail route in Florida, which runs between Miami and Orlando. This was the first privately built railway line in the United States in over a century, with customer services first opening along part of the line in 2018, although it is not classified as high-speed.
What People Are Saying
Brightline West CEO Mike Reininger told Bloomberg: “Given the increase in project costs, we needed to figure out a way to advance the project.”
He added: “We have had very productive conversations with USDOT and the Federal Railroad Administration the last few months to continue to move Brightline West forward.”
What Happens Next
It remains to be seen whether the Department of Transportation will provide the $6 billion loan requested by Brightline West. While the plan was previously praised by Duffy, the transportation secretary has also shown skepticism about state funding of high-speed rail.
