The highly anticipated high-speed train that could connect L.A. to Las Vegas, is closer to begin its construction, but now, it’s facing new challenges. According to recent reports, the project’s costs are rising.
The developing company, Brightline West, has faced higher expenses than expected, prompting the company to request additional federal loans and rely on private financing, as reported by NPR.
Officials say that some adjustments, like placing the terminal outside DTLA (in Rancho Cucamonga) are part of efforts to manage spending. But still, the latest news is that the total cost has climbed from $16 billion to $21.5 billion, and it could rise further due to inflation, labor shortages, and competition from other infrastructure projects, the Daily Mail reports.
To cover the funding gap, Brightline West has applied for a $6 billion federal loan from the U.S. Department of Transportation. Earlier, the company issued $2.5 billion in private activity bonds in February, which makes securing the loan by November essential. If the loan isn’t approved, the company could face higher costs and might need to repay investors sooner than planned.
If these challenges can be overcome, the bullet train would become the country’s first high-speed rail, reaching speeds of up to 200 mph and connecting the two cities in just 2.5 hours, half the driving time.