A few days ago, the US Department of Transportation (USDOT) announced Bipartisan Infrastructure Law grants for intercity rail that are not part of the Northeast Corridor program. The total amount disbursed so far is $8.2 billion; more will come, but the slate of projects funded fills me with pessimism about the future of American intercity rail. The total amount of money at stake is a multiple of what the Obama-era stimulus offered, which included $8 billion for intercity rail. The current program has money to move things, but is repeating the mistakes of the Obama era, even as Secretary of Transportation Pete Buttigieg clearly wants to make a difference. I expect the money to, in 10 years, be barely visible as intercity rail improvement – just enough that aggrieved defenders will point to some half-built line or to a line where the program reduced trip times by 15 minutes for billions of dollars, but not enough to make a difference to intercity rail demand.
What happened in the Obama era
The American Recovery and Reinvestment Act (ARRA), better known as the Obama stimulus, included $8 billion for what was branded as high-speed rail. Obama and Secretary of Transportation Ray LaHood spoke favorably of European and East Asian high-speed rail at the time. And yet, the impetus to spread the money across multiple states’ programs meant that the sum was, by spending, around half for legacy rail projects euphemistically branded as higher-speed rail, a term that denotes “faster than the Amtrak average.” Ohio, Wisconsin, and Illinois happily applied that term to slow lines. The other half went to the Florida and California programs, which were genuinely high-speed rail. In Florida, the money was enough to build the first phase from Orlando to Tampa, together with a small state contribution.
Infamously, Governor Rick Scott rejected the money after he was elected in the 2010 midterms, and so did Governors Scott Walker (R-WI) and John Kasich (R-OH). The money was redistributed to states that wanted it, of which the largest sums went to California and Illinois. And yet, what California got was a fraction of the $10 billion that the High-Speed Rail Authority had been hoping for when it went to ballot in 2008; in turn, the cost overruns that were announced in 2011 meant that even the original hoped-for sum could not build a usable segment. The line has languished since, to the point that Governor Gavin Newsom said “let’s be real” regarding the prospects of finishing the line. Planning is continuing, and the mostly funded, under-construction segment connecting Bakersfield, Fresno, and Merced is slated to open 2030-33 (in 2008 the promise was Los Angeles-San Francisco by 2020), but this is a fraction of what was promised by cost or utility; Newsom even defended the Bakersfield-Merced segment on the merits, saying that connecting three small, decentralized metro areas to one another with no onward service to Los Angeles or San Francisco would provide good value and taking umbrage at the notion that it was a “train to nowhere.”
In Illinois, the money went toward improving the Chicago-St. Louis line. However, Union Pacific owns the tracks and demanded, as a precondition of allowing faster trains, that the money be spent on increasing its own capacity, leading to double-tracking on a line that only run five trains a day in each direction; service opened earlier this year, cutting trip times from 5:20-5:35 in 2010 to 4:46-5:03 now, at a cost of $2 billion. This is a 457 km line; the cost per kilometer was not much less than that of the greenfield commuter line to Lahti, which has an hourly commuter train averaging 96 km/h from Helsinki and a sometimes hourly, sometimes bihourly intercity train averaging 120. In effect, UP extracted so much surplus that a small improvement to an existing line cost almost as much as a greenfield medium-speed line.
Lessons not learned
The failure of the ARRA to lead to any noticeable improvement in rail service can be attributed to a number of factors:
- The money was spread thinly to avoid favoring just one state, which was perceived as politically unacceptable (somehow, spending money on a flashy project with no results to show for it was perceived as politically acceptable).
- The federal government could only spend the money on projects that the states planned and asked for – there was no independent federal planning.
- There was inattention to best practices in legacy rail planning, such as clockface timetabling, higher cant deficiency (allowed by FRA regulation since 2010), etc.; while the high-speed rail program aimed to imitate European and East Asian examples, the legacy program had little interest in doing so, even though successful legacy rail improvements in such countries as the UK, Germany, Sweden, Switzerland, Austria, and the Netherlands were available already.
- A dual mandate of both jobs and infrastructure, so that high costs were a positive to an interest group that the federal government and the states announced they wanted to support.
- California specifically was a series of unforced errors, including a politicized High-Speed Rail Authority board representing parochial rather than statewide interests, disinterest in developing any state capacity to plan things (the expression “state capacity” wouldn’t even enter common American political discourse until the late 2010s), early commitment, and, once the combo of cost overruns and insufficient money on hand meant the project had no hope of finishing in the political lifetime of anyone important, disinterest in expediting things.
I have not seen any indication that Buttigieg and his staff learned any of these lessons, and I have seen some indication that they have not.
For one, the dual mandate problem is if anything getting worse, with constant invocations of job creation even as unemployment is below 4% where in 2010 it was 10%, and with growing protectionism; the US has practically no internal market for modern rolling stock and the recent spate of protectionism is leading to surging costs, where until recently there was no American rolling stock cost premium. This is not an intercity rail problem but an infrastructure problem in general in the US, and every time a politician says “this will create jobs,” a surplus-extracting actor gets their wings.
Then, even though the NGO space has increasingly been figuring out some best practices for regional trains, there is still no integration of these practices into infrastructure planning. The allergy to electrification remains, and mainline rail agency officials keep making things up about rest-of-world practices and getting rewarded for it with funds. Despite wide recognition of the extent of surplus extraction by the Class I freight carriers, there is no attempt to steer funding toward lines that are already owned by passenger rail-focused public-sector carriers, like the Los Angeles-San Diego line, much of the Chicago-Detroit line, and the New York-Albany line.
The lack of independent federal planning is if anything getting worse, relative to circumstances. In the Obama era, the Northeast Corridor was put aside. Today, it is the centerpiece of the investment program; I’ve been told that Biden asks about it at briefings about transportation investment and views it as his personal legacy. Well, it could be, but that would require toothy federal planning, and this doesn’t really exist – instead, the investment program is a staple job of parochial interests. Based on this, I doubt that there’s been any progress in federal planning for intercity rail outside the Northeast.
And finally, the money is still being spread too thinly. California is getting $3.1 billion, which is close to but not quite enough to complete Bakersfield-Merced, whose cost is in year-of-expenditure dollars at this point $34 billion for a 275 km system in the easiest geography it could possibly have. Another $3 billion is slated to go to Brightline West, a private scheme to run high-speed trains from Rancho Cucamonga in exurban Los Angeles, about 65 km from city center, to a greenfield site 4 km south of the Las Vegas Strip; the overall cost of the line is projected at $12 billion over a distance of 350 km. It’s likely that this split is worse than either giving all $6 billion to California or giving all of it to Brightline West. But as I am going to point out in the following section, it’s worse than giving the money to places that are not the Western United States.
The frustrating thing is that, just as I am told that Biden deeply cares about the Northeast Corridor, Buttigieg has been quoted as saying that he cares about developing at least one high-speed rail line, as a legacy that he can point to and say “I did that.” Buttigieg is a papabile for the 2028 presidential primary, and is young enough he can delay running for many cycles if he feels 2028 is not the right time, to the point that “I built that” will strengthen his political prospects even if he has to wait until opening in the 2030s. And yet, the money committed will not build high-speed rail. It might build a demonstration segment in California, but a Bakersfield-Fresno line and even a Bakersfield-Merced one with additional funds would scream “white elephant” to the general public.
Is it salvagable?
Yes.
There are, as I understand it, $21.8 billion in uncommitted funds.
What the $21.8 billion is required to achieve is a) a complete high-speed line, b) not touching the Northeast Corridor (which is funded separately and also poorly), c) connecting cities of sufficient size that passenger ridership would make people say “this is a worthy government investment” rather than “this is a bridge to nowhere on steroids.” Even a complete Los Angeles-Las Vegas line is not guaranteed to be it, and Brightline West is saving money by dumping passengers tens of kilometers along congested roads from Downtown Los Angeles.
Given adequate cost control, Chicago-Detroit/Cleveland is viable. It’s around 370 km Chicago-Toledo, 100 km Toledo-Detroit, 180 km Toledo-Cleveland, depending on alignments chosen; $21.8 billion can build it at the same cost projected for Brightline West, in easier topography. If money is almost but not quite enough, then either Cleveland or Detroit can be dropped, which would make the system substantially less valuable but still create some demand for completing the system (Michigan could fund Toledo-Detroit with state money, for example).
But this means that all or nearly all of the remaining funds need to go into that one basket, and Buttigieg needs to gamble that it works. This requires federal coordination – none of the four states on the line has the ability to plan it by itself, and two of them, Indiana and Ohio, are actively hostile. It’s politically fine as a geographic split as it is – that part of the Midwest is sacralized in American political discourse due to its industrial history, which history has also supplied it with large cities that could fill trains to Chicago and even to one another; politicians can more safely call Los Angeles “not real America” than they can Detroit and Cleveland.
But so far, the way the Northeast Corridor money and the recently-announced $8.2 billion for non-Northeast Corridor service have been spent fills me with confidence that this will not be done. The program is salvageable, but I don’t think it will be salvaged. There’s just no interest in having the federal government do this by itself as far as I can see, and the state programs are either horrifically expensive (California) or too compromised (Midwest, Southeast, Pacific Northwest).
So what I expect will happen is more spreading of the money to lines averaging 100 km/h or less, plus maybe some incomplete grants to marginal high-speed lines (Atlanta-Charlotte is a contender, but would get little traffic until it connects to the Northeast Corridor and would cost nearly the entire remaining pot). Every government source will insist that this is high-speed rail. Some parts will be built and end up failing to achieve much, like Chicago-St. Louis. Every person who is not already bought in will learn that the government is inefficient and it’s better to cut taxes instead, as is already done in Massachusetts. Americans will keep making excuses for why it’s just not possible to have what European and a growing list of Asian countries have, or perhaps why there’s no point in it since if it were good it would have been invented by the American private sector.