The state now has 37 days to respond, or risk losing nearly $4 billion in federal funding.
The California High-Speed Rail project, intended to connect Los Angeles and San Francisco, is facing significant challenges, with a state watchdog report indicating "no viable path forward" for the project. The report highlights that the project's costs have escalated to an estimated $100 billion, far exceeding the initial $33 billion budget, and it is currently only 10% complete. The Peer Review Group, responsible for the report, expressed concerns over the project's funding, as it lacks a dedicated source and relies heavily on federal and state funds, which are uncertain. The group also criticized the project's management for not providing a realistic plan to complete the rail line, suggesting that the project might need to be scaled back or reconsidered entirely.