Funding and Political Games: The Biggest Obstacle to U.S. High-Speed Rail Development

According to a report released in 2024 by infrastructure consulting firm AECOM, high-speed rail projects are among the world'smost complex and costly infrastructureprojects. Such projects often spark controversy over land acquisition and property rights, leading to years-long timelines from planning to completion, which in turn drives up costs for construction labor, equipment, and materials.

"We have been trying to develop high-speed rail in the United States for a long time, but we have not truly succeeded yet," said Eric Goldwyn, professor of transportation and land use at the Marron Institute, during a webinar on July 9.

Goldwyn is the lead author of a report that, based on interviews with 66 experts in the field, proposesfive recommendations to accelerate the realization of true high-speed rail in the U.S.The research calls for separating the planning process from environmental reviews, having the U.S. Department of Transportation set technical standards, strengthening ties between universities and industry, and requiring project sponsors to develop and manage well-defined projects. However, topping the list is a "true federal commitment," which Goldwyn noted includes long-term funding and staffing for high-speed rail from the Department of Transportation.

"The biggest obstacle has always been funding," said U.S. Transportation Secretary Pete Buttigieg. "President Biden's infrastructure bill is changing that, but we have more work to do to truly reach the stage of moving from 'introducing high-speed rail' to 'expanding high-speed rail.'"

Federal funding is crucial to launching such massive projects, and that requires support from voters as well as business and political leaders at both the local and national levels.

Can growing support translate into federal funding?

A Newsweek survey conducted in June found that60% of U.S. voters support building new high-speed rail lines, with only 7% opposed. Among them, 67% of voters who supported Joe Biden in 2020 expressed support, while 59% of those who said they voted for former President Donald Trump also supported it.

Although the California high-speed rail project—currently over budget and with no completion date set for the Los Angeles-to-San Francisco line—has become a target for Republican House members in the current Congress, some Republican lawmakers haveexpressed support for the Texas Central project, which could connect Dallas and Houston; they have also supportedBrightline West—a 218-mile line connecting Las Vegas and Southern California that is currently under construction.

"The projects we are involved in have received significant bipartisan support," said Wes Edens, head of Brightline West. Edens is the co-founder and CEO of Fortress Investment Group, which backs the Brightline West project. Nevada Governor Joe Lombardo (a Republican) rode Brightline's Florida train from Orlando to Miami in June and attended the groundbreaking ceremony for the Brightline West project. At the ceremony, he said: "We will create thousands of jobs, bring critical transportation infrastructure to the West, and deliver an innovative, fast, and sustainable transportation solution."

Michael Cahill, president of rolling stock at Siemens Mobility North America, believes that the "skepticism" in the U.S. "is fading," adding that he is "optimistic" about the prospects for more high-speed rail projects.

The Bipartisan Infrastructure Law of 2021allocated $66 billion for rail projects, but this is spread across multiple projects. This year, approximately$3 billion eachwas awarded to the high-speed rail project in California's Central Valley and to Brightline West. These two projects, along with five others, each received planning grants of up to $500,000. However, federal generosity will end in fiscal year 2026.

"I don't think we will see another round of investment like the infrastructure bill for quite some time," said Greg Regan, president of the Transportation Trades Department at AFL-CIO. "But that doesn't mean we can't support such projects through sustained appropriations."

The next Congress will have to address thereauthorization of surface transportation funding, which historically funds highways and public transit in five-year cycles. Amtrak receives annual appropriations from Congress, while the Federal Railroad Administration oversees various grant programs for other rail projects.

"When it comes to high-speed rail, you really need to look forward to the next federal surface transportation bill to get more projects off the ground," said Dani Simons, vice president of communications and public affairs at Alstom. Alstom manufactures Amtrak's newest160 mph Acela train sets, which, according to Amtrak President Roger Harris, will enter service on the Northeast Corridor this winter. Simons said: "A new federal transportation bill, whether reauthorized at the same or higher funding levels, is crucial to sustaining the projects initiated by this administration."

Looking ahead to a national high-speed rail network

Experts interviewed by Smart Cities Dive generally believe that the successful completion of the first true high-speed rail line in the U.S. will spark interest in more projects. "The biggest turning point for high-speed rail in this country will be the moment the first train actually runs," Regan said. These advocates say that the appeal of job creation, the growth of new industries, and voter demand for better travel options could drive more bullet train projects forward.

Andy Kunz, president and CEO of the U.S. High Speed Rail Association, envisions a networkthat includes 220 mph and 110 mph lines connecting major cities across the country. "We need a national network, just as we now address climate change," Kunz said.

The U.S. lags far behind Europe, Japan, and China in high-speed rail development. According to the International Union of Railways, Europe operates nearly 7,700 miles of high-speed rail, with another 1,200 miles under construction and more planned. Japan boasts the world's first high-speed rail system, with nearly 2,000 miles in operation. The world leader is China, which has put into service more than25,000 miles of high-speed railsince 2008. Globally, over 3 billion people ride high-speed rail each year.

"I think the U.S. will develop like Europe, forming shared corridors around existing facilities," said Cahill of Siemens Mobility. He explained that such trains run at high speeds on dedicated tracks but merge into existing rail lines at slower speeds when approaching cities.

U.S. Representative Seth Moulton (D-Massachusetts), a longtime advocate for high-speed rail, along with Representative Suzan DelBene (D-Washington), introduced legislation earlier this year that would require the Department of Transportation toinvest $205 billion in high-speed rail over five years. "It will connect cities and towns across America that feel disconnected from today's economy, enabling all Americans to travel comfortably, safely, efficiently, and on time at speeds of 200 miles per hour or more," Moulton said.

"We have the opportunity to add a world-class high-speed rail network to the transportation options Americans already have, and the U.S. should aspire to lead the world in this field, even if we still have room to catch up today," Buttigieg said.