WASHINGTON – The $12 billion Brightline West high-speed passenger rail project got a boost today in the form of $2.5 billion in private activity bonds, the U.S. Department of Transportation announced.
Brightline West aims to build a 218-mile dedicated passenger railroad between Las Vegas and Rancho Cucamonga, Calif. Trains would operate at speeds of up to 186 mph, linking Sin City and the Los Angeles area in 2 hours and 10 minutes, which is twice as fast as driving. At Rancho Cucamonga passengers would be able to connect to existing Metrolink service.
“Today, the Biden-Harris administration takes the next step to fulfill the promise of high-speed rail in the American West, with $2.5 billion in private activity bond authority to lay tracks, create jobs, and connect American cities,” Transportation Secretary Pete Buttigieg said in a statement.
The funding is the latest for Brightline West. DOT previously approved a private activity bond allocation of $1 billion in 2020. In December, DOT also awarded a $3 billion Bipartisan Infrastructure Law grant to the Nevada Department of Transportation for this project. In June, DOT awarded a $25 million grant to San Bernardino County Transportation Authority that will be used for the construction of the Brightline West stations in Hesperia and Victor Valley, Calif.
“As the first true high-speed rail system in America, Brightline West will serve as the blueprint for connecting cities with fast, eco-friendly passenger rail throughout the country,” Brightline Founder and Chairman Wes Edens said in a statement. “Connecting Las Vegas and Southern California will provide wide-spread public benefits to both states, creating thousands of jobs and jumpstarting a new level of economic competitiveness for the region. We appreciate the confidence placed in us by DOT and are ready to get to work.”
The allocations provide privately financed projects with access to tax-exempt bonds, which reduces their cost of capital and increases private sector involvement in the delivery of transportation projects. The Bipartisan Infrastructure Law signed in November 2021 doubled the available private activity bond authority to $30 billion.
Last week, Brightline West said it was launching field investigation work in Nevada within the proposed rail corridor within Interstate 15 right-of-way. The field work will advance final stages of design in preparation for a groundbreaking. The field work includes geotechnical borings and samplings, utility potholing and land surveying. Work will take place primarily during daytime hours, with some work at night to minimize disruption to traffic.
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