US Department of Transportation Secretary Ray LaHood announced Thursday that $1.195 billion in high-speed rail funds originally designated for Wisconsin and Ohio will be redirected to other states eager to develop high-speed rail corridors across the US. Wisconsin has suspended work under its existing high-speed rail agreement and the incoming Governors in Wisconsin and Ohio have both indicated that they will not move forward to use high-speed rail money received under the American Recovery and Reinvestment Act (ARRA). As a result, $1.195 billion will be redirected to high-speed rail projects already underway in other states.
"High-speed rail will modernize America's valuable transportation network, while reinvigorating the manufacturing sector and putting people back to work in good-paying jobs," said Transportation Secretary Ray LaHood. "I am pleased that so many other states are enthusiastic about the additional support they are receiving to help bring America's high-speed rail network to life."
The Recovery Act included $8 billion to launch a national high-speed rail program that will modernize America's transportation network, spur economic development domestically and keep the US competitive with other leading nations. High-speed rail grants announced under the Recovery Act can be used only for high-speed rail projects and not for other transportation projects.
Last year, the Obama Administration received a commitment from 30 domestic and foreign rail manufacturers to establish or expand their base of operations in the US if selected for contracts building America's high-speed rail network. These rail manufacturers and suppliers committed to not only locate in the US, but to ensure high-speed rail projects are built by American workers with American-made supplies. To deliver maximum economic benefits to American taxpayers, the Administration's high-speed rail program also includes a 100 percent ‘Buy American' requirement.
Under the Recovery Act, the Federal Railroad Administration originally announced $810 million for Wisconsin's Milwaukee-Madison corridor and $400 million for Ohio's Cincinnati-Columbus-Cleveland "3C" route. The Federal Railroad Administration will redirect $810 million from Wisconsin and $385 million from Ohio, and will work with these states to determine whether they have already spent money under their contracts that should be reimbursed.
The $1.195 billion originally designated for those high-speed rail projects in Wisconsin and Ohio will now be used to support projects in the following states: California: up to $624 million; Florida: up to $342.3 million; Washington State: up to $161.5 million; Illinois: up to $42.3 million; New York: up to $7.3 million; Maine: up to $3.3 million; Massachusetts: up to $2.8 million; Vermont: up to $2.7 million; Missouri up to $2.2 million; Wisconsin: up to $2 million for the Hiawatha line; Oregon: up to $1.6 million; North Carolina: up to $1.5 million; Iowa: up to $309,080; Indiana: up to $364,980.