Multiple Hill sources from both parties confirm that the final continuing resolution (CR) to fund the government through the end of September will include a $1.5 billion cut in funds for the planned national high-speed rail system. Jennifer Hing, communications director for the House Appropriations Committee, said that the reduction could actually grow larger as lawmakers negotiate the final language.
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In signing off on cuts, the Obama administration is taking a major hit to one of the president’s favorite transportation priorities. In the process, he is also giving fodder to critics who have accused the White House’s push for high-speed rail as pie-in-the-sky policy that would fall far short of transforming the nation’s antiquated infrastructure.
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The White House was able to secure $8 billion in high-speed rail money in the 2009 stimulus package. The current level of funding was $2.5 billion-a-year. The cuts secured under the budget deal reached on Friday night brings the annual rail dollars down to $1 billion, though administration officials stressed that none of the lost funds would come from existing projects that have received grants.
The president had budgeted $1 billion himself in his 2012 budget proposal but as recently as mid-February 2011, Transportation Sec. Ray LaHood was encouraging Congress to authorize $53 billion over the next six years.
http://www.huffingtonpost.com/2011/04/11/obamas-high-speed-rail-budget-deal_n_847587.html