Administration to Request More High Speed Rail Investment

Vice President Joseph Biden and Transportation Secretary Ray LaHood this week announced the Administration’s intent to request a significant increase in funding for its high speed rail initiative. As part of the president’s budget request for FY 2012, which will be presented on Monday, February 14, President Obama will request $8 billion for new high-speed rail infrastructure investment. This will be a down payment on his proposal for a six-year $53 billion investment in high-speed rail.  The FY 2012 funds are proposed to be split equally into two accounts with $4 billion going to network development and $4 billion for system preservation and renewal.  Biden indicated that the high speed rail initiative will be part of the Administration’s proposal for the six-year highway and transit reauthorization legislation. Neither Vice President Biden nor Secretary LaHood indicated how the initiative would be funded. Congressional reaction to the announcement was immediate. House Transportation Committee Chairman John Mica (R-Fla.) and Railroads Subcommittee Chairman Bill Shuster (R-Pa.) issued a press release expressing "extreme reservations" regarding the Administration’s plan. Both criticized the $10.5 billion in high-speed rail grants issued over the last two years from stimulus funds and other legislation. The timing for the announcement coincided with an announcement from the House Appropriations Committee Chairman that as part of the Committee’s deficit reduction efforts for FY 2011, $1 billion in existing high speed rail funding would be eliminated.  For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.