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ORAL STATEMENT OF SARAH E. FEINBERG

ADMINISTRATOR

FEDERAL RAILROAD ADMINISTRATION

U.S. DEPARTMENT OF TRANSPORTATION

Before the

Committee on Transportation and Infrastructure,

Subcommittee on Railroads, Pipelines, and Hazardous Materials

United States House of Representatives

Field Hearing on the Continued Oversight of California High 

Speed Rail

August 29, 2016

Chairman Denham, Ranking Member 

Capuano, and Members of the 

Subcommittee: Thank you for inviting me to 

today’s hearing.

Much attention has been paid to the urgent 

need for the United States to build a modern 

transportation system to keep up with our 

growing population, increased congestion, 

and more diverse economy.

Congress rightfully recognized nearly eight 
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years ago that in order to achieve this goal, 

our transportation system must include more 

reliable, more frequent, and faster, passenger 

rail service.

Congress passed two landmark pieces of 

legislation that established FRA’s HighSpeed Rail Program, and then through the 

Recovery Act, provided the seed money to 

begin building this stronger system.

FRA and Congress conceived of a HighSpeed and Intercity Passenger Rail Program 

that would be national in scope, but led by 

the states in execution.

With the launch of the program, there was 

immediate and significant interest - states 

submitted nearly 500 applications requesting 

more than $75 billion worth of projects – far 

exceeding the funds Congress had made 

available. 
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FRA eventually awarded $10 billion dollars 

to nearly 150 rail projects, including $3.5 

billion to California.

With California’s growing population, the 

state was understandably focused on 

building out a high-speed rail system that 

would serve its growing communities ... 

because two railroad tracks can carry as 

many travelers in an hour as 16 lanes of a 

congested freeway.

As the Chairman knows, anyone who lives, 

works or visits the Bay area, or the Los 

Angeles area, can recount far too many 

nightmare stories about congestion on the 

roads and in the sky – vehicular and air 

space traffic at all times of the day, costing 

commuters, families and businesses hours of 

time and money. The LA-to-San Francisco 

flight has become one of the busiest and 

most delay-prone, short-haul air markets in 
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the U.S. One in every five flights is late by 

more than an hour.

And the challenge of moving more people 

and goods in a safe, efficient way will only 

continue to grow. By 2050, California is 

predicted to be home to another 12 million 

people.

To add capacity to California’s 

transportation system the CA HSR 

Authority is leveraging the majority of the 

$3.5 billion FRA awarded to construct the 

first 119 miles of rail in California’s Central 

Valley.

The federal investment made in CA high 

speed rail is significant. And FRA takes its 

obligations to protect the taxpayers’ 

investment seriously. 

FRA closely monitors the CA project, and 

the CAHSR Authority, as we do with all 
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grants. 

Like all major and ambitious transportation 

projects, there have been, and remain, 

important challenges that demand continued 

attention. 

Consistent with grants management and 

oversight best practices, FRA works closely 

with all of our grantees to ensure that 

taxpayer dollars are spent wisely, and that 

contractual agreements are current and 

adhered to. 

To be clear, and despite reporting to the 

contrary, ensuring that a project is meeting 

its obligations, and amending contractual 

grant agreements is not only a due diligence 

requirement, but it is also standard practice 

for any agency that oversees grants. 

Last spring, the California High Speed Rail 

Authority and FRA executed the sixth 
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amendment to ensure that the contractual 

agreement that exists between the two 

entities accurately reflects the current 

project status. CHSRA also requested FRA’s 

approval of a $60-million working capital 

advance for right-of-way acquisitions 

needed to allow construction work to 

progress and remain on schedule.

A working capital advance is one of the 

approved payment methods allowed under 

federal government’s stringent grant 

payment rules. This tool is available to any 

grantee, and can be used effectively for 

timely right-of-way acquisition on large 

infrastructure project across the country. In 

fact, other agencies like Department of 

Health and Human Services and the 

Department of Homeland Security also use 

this same method of payment.

FRA is in daily communication with 

CHSRA and remains fully committed to its 
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oversight role.

Mr. Chairman, in closing, for centuries, 

leaders in California and across the United 

States have built bold projects.

Many of those projects haven’t been easy or 

without challenges; but, these projects are 

worth the persistence and dedication 

because they are necessary to move our 

country forward.

I believe this project is no different.

We continue to look forward to working 

with California, with Congress, and with 

your staff, as we continue to make progress 

in bringing this project to completion 

Thank you, and I am happy to answer any 

questions.