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States Seek High-Speed Rail Money from Biden and LaHood

By Barbara E. Hernandez | Jun 4, 2009

It seems like almost every state is hoping to garner some of the $13 billion earmarked for high-speed rail in the federal stimulus package. But Vice President Joseph Biden and U.S. Transportation Secretary Ray LaHood, who are spearheading the American Recovery and Reinvestment Act rail project, were quick to say that most of the railroad work and infrastructure will fall to the states.

Many governors and state officials met with the vice president and transportation secretary this week to discuss and lobby for high-speed rail funds, including California, Michigan, Georgia, Wisconsin, Pennsylvania and Massachusetts. The administration would release a how-to on applying for stimulus money June 17. No promises were made and final disbursement of funds would be made in late fall, La Hood told Reuters.

So far, a sampling of the projects include: Michigan hoping to build rail cars to help stimulate its economy, California banking on stimulus money to help finish the $34 billion first phase of its Los Angeles-San Francisco route, Oregon and Washington want to speed up the Amtrak Cascades route, Illinois wants 110 m.p.h. trains through the Midwest and Pennsylvania wants to improve its Philadelphia-Harrisberg line.

Unfortunately, $13 billion doesn’t go far. The entire Los Angeles-San Francisco route is expected to reach around $50 billion and an upgrade of the Amtrak Cascades route, from Portland to British Columbia, could only view $8 billion as “seed money.”  Still, in a time where financing and jobs are scarce, states are willing to lobby for a few billion dollars in federal aid.

The projects, which could promise lower pollution and less-crowded highways, along with jobs, are very attractive. However, for our country to revamp and rehabilitate our rail system, it needs hundreds of billions of dollars. A $400 billion plan would be enough seed money for generations to come — yet still be less than Congress borrowed to bail out banks and Wall Street. Only this time, Americans might see some benefit and jobs from their taxpayer dollars.

Let’s hope the Obama administration sees the importance of investing in railways for the future and is willing to help fund its infrastructure — and much more than a measly $13 billion.

Photo courtesy of Amtrak Cascades

Bay Area resident and award-winning business journalist Barbara E. Hernandez has covered tourism, real estate and personal finance. Her clients include the New York Times, Los Angeles Times, San Francisco Chronicle and Washington Post.

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