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Today, Florida Gov. Rick Scott announced he plans to reject more than $2 billion in high-speed rail funds allocated by the U.S. Department of Transportation (USDOT). Industry associations and high-speed rail stakeholders have issued statements protesting the governor’s decision.

“We are extremely disappointed by Gov. Rick Scott’s decision to walk away from the job creating and economic development benefits of high speed rail in Florida,” said U.S. Transportation Secretary Ray LaHood in a prepared statement. “We worked with the governor to make sure we eliminated all financial risk for the state, instead requiring private businesses competing for the project to assume cost overruns and operating expenses.”

The U.S. High Speed Rail Association (USHSR) expressed a similar sentiment.

“The high-speed rail project in Florida had already received 90 percent of the funds necessary to complete the segment from Tampa to Orlando, and the remaining 10 percent could have been funded by private investment,” said Thomas Hart, who serves as the association’s vice president of government affairs and general counsel. “Governor Scott’s decision must be carefully evaluated and all options must be pursued to fulfill the will of the voters in Florida who have repeatedly expressed strong interest in bringing high-speed rail and enhanced commuter rail to the state.”

Added USHSR President and Chief Executive Officer Andy Kunz:

“Gov. Scott’s actions were premature. He made his decision without the benefit of the ridership study he commissioned, which was soon to be released. The RFQ submissions were never issued, which would have given the bidding teams the opportunity to cover all operations and maintenance costs. He also failed to provide the private sector with the opportunity to cover any construction funding gaps.”

Officials at the American High Speed Rail Alliance also believe the private sector should have had a chance to weigh in prior to Scott making a final decision.

“Florida has a track record of cooperative relationships with private equity and public projects, working together to achieve mutually desirable goals and high return on investments,"  said AHSRA Executive Director Mary Ellen Curto. “The rejection of the funding eliminates the opportunity Florida would have had as a leader in American high-speed rail and the continued success in public-private partnerships."

National and state organizations are “mobilizing to appeal” the governor’s decision and explore alternative ways to bring high-speed rail to Florida, Kunz said.

Meanwhile, the USDOT appears to be ready to redirect the funds allocated for Florida to other states.

“There is overwhelming demand for high-speed rail in other states that are enthusiastic to receive Florida’s funding and the economic benefits it can deliver, such as manufacturing and construction jobs, as well as private development along its corridors,” LaHood said.

However, USDOT spokesperson Olivia Alair says she does not yet have details on whether — or when — the department might redirect Florida’s funds. She also could not yet say whether Florida will need to repay the federal government for any money already spent.