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Yesterday, the U.S. Department of Transportation (USDOT) announced it was redirecting $1.195 billion in high-speed rail funds originally intended for Wisconsin and Ohio to 14 other states to develop high-speed rail corridors.

But what exactly does this mean for the high-speed rail program in general? And, more specifically, for the states that will now reap the benefits of the incoming Wisconsin and Ohio governors’ opposition to high-speed rail?

For context, HSRupdates.com checked in with National Railroad Construction and Maintenance Association President Chuck Baker, as well as the USDOT and representatives from the states that stand to gain the most money from the funding redirection.

Of the various scenarios that could have played out as a result of Governor-elect Scott Walker and John Kasich refusing high-speed stimulus funds for their states (including using the funds for highway projects or returning it the federal government to be used for debt reduction), the redirection of dollars was one of the best outcomes for the rail industry, says Baker, who also serves on the advisory board for the American High Speed Rail Alliance.

“It avoids the disastrous scenarios where the money is directed out of the rail industry,” he says.

And although there’s still a possibility that congressmen could make a case for using the high-speed funds for other purposes, the funding redirection will “make it a much steeper hill to climb,” even though the redirected dollars have only been earmarked and not yet obligated, Baker says.

“Politically speaking, there’s now a constituency that would be very much against using those funds for anything else,” he says. “All of a sudden, California, Florida, Washington and all those other states have a very big stake in the money not being redirected to Wisconsin and Ohio roads.”

Yesterday’s announcement also could provide some much-needed momentum for the High Speed Intercity Passenger Rail program, which has lost some steam since the Nov. 2 elections as incoming governors and congressmen have criticized the program and threatened to use unobligated stimulus funds for deficit reduction.  

“It reinforces what we’ve been saying all along — there are lots of other places that are willing and eager to move ahead,” says Baker. “Just because we have two tea party-backed candidates in the Midwest who aren’t interested in passenger-rail investment, it doesn’t signify the death of high-speed rail in the country.”

Just ask high-speed rail backers in California, Florida or Washington state, which are set to receive up to $624 million, $342 million and $161.5 million, respectively, in high-speed funds originally intended for Wisconsin and Ohio.

“The funds were redistributed to states in proportion to the amount of their initial high-speed rail awards,” according to a USDOT spokesperson, who asked to remain anonymous. “The next step is to enter into grant agreements with the states. For those we haven’t reached agreements with yet, the grant agreement will cover the new, larger amount of funds. For states with grant agreements already in place, we will amend the agreement to include the additional money and expanded scope of work.”

The California High Speed Rail Authority (CHSRA) plans to apply the additional dollars to the Central Valley segment, extending it beyond the recently announced Madera-to-Corcoran initial segment, says authority spokesperson Rachel Wall, adding that CHSRA has not yet determined in which direction it would extend the segment.

Since CHSRA announced the official construction starting point on Dec. 2, state and local officials have criticized CHSRA’s decision to begin construction on what they deem as an illogical segment because it doesn’t connect any of the major cities in the state’s high-speed rail plan. Although the announcement of additional federal dollars for the Central Valley segment might quiet some critics since CHSRA now can build the line out farther, Wall says the authority needs to continue communicating the reasons behind its decision.

“This is about the bigger picture. Californians want a high-speed rail system that connects our major metropolitan cities, but we have to start somewhere,” she says. “Regardless of where it starts, this is still construction on high-speed rail. It’s not about the local cities that are or aren’t getting a station immediately; it’s about building a system between the Bay Area and L.A. Basin.”

For Florida, the additional influx of high-speed dollars will provide the state with the remainder of the capital costs needed to build the $2.6 billion Tampa-to-Orlando high-speed rail corridor, says Florida Rail Enterprise Chief Operating Officer Nazih Haddad.

“What [the USDOT] is giving us is the remainder of what we had requested under our application in August, so they filled the gap we had,” he says. “Clearly this is very positive and quite exciting for us.”

But in recent months, questions have been raised about the future of Florida’s high-speed rail project. Although he hasn’t outright opposed high-speed rail, incoming governor Rick Scott has raised concerns over high speed-related costs the state might have to incur. Haddad wouldn’t comment on whether having all the construction funds in hand might ease Scott’s mind.

“We are proceeding just like we have been, moving ahead with engineering and procurement for the project, and we’re still working on developing a request for qualifications, proposals and early works projects,” he says.

Meanwhile, Washington State DOT officials have said they plan to use the additional high-speed funds for “eligible projects” in its original application for high-speed stimulus funds, such as a series of repairs to a BNSF Railway Co. line between Everett and Blaine, according to a press release. The repairs would reduce delays and increase on-time performance for Amtrak Cascades service. There were 14 projects valued at $602 million in the original application that did not receive funding, WSDOT said.

As for Wisconsin and Ohio, which now appear to be out of the high-speed game, at least for the time being? The USDOT will work with Wisconsin DOT officials to determine whether they’ve already spent money under the federal grant agreement and, if so, whether those funds need to be reimbursed. The Ohio DOT will continue with preliminary work and design for the proposed 3C corridor connecting Cleveland, Columbus, Dayton and Cincinnati.

“We aren’t asking Ohio to return that money because the work the money was intended for is being done,” says the USDOT spokesperson.

And although the redirection of funds is positive news for the high-speed program in general, there is some remorse over the loss of two major players in the national high-speed rail network.

“I feel very sorry for Wisconsin and Ohio,” says Haddad.

“I would venture to guess that no governor has ever lost more money for their state before being sworn in than Walker just did,” adds NRC’s Baker.

— Angela Cotey