The city’s rail project has a “binding contract” to continue to receive federal funding despite the Trump administration’s threat to pull an estimated $4 billion from California’s high-speed train project.
U.S. Sen. Brian Schatz, D-Hawaii, said in a statement that the so-called full-funding grant agreement between Honolulu’s rail project and the Federal Transit Administration “is a binding contract between the FTA and the City and County of Honolulu.”
“We expect both parties to continue to adhere to the provisions within the contract,” Schatz said. “We will continue to work with the FTA and the City to make sure the milestones are met and the remaining federal funding is obligated as outlined in the FFGA.”
Since 2017, the FTA had withheld $744 million in rail funding following years of construction delays and skyrocketing budgets.
The federal financial spigot finally turned on in 2024 after the route was cut by two stations, rail service began in 2023 and the state Legislature allowed each county to charge a new 3% hotel room tax, which Oahu now uses, in part, to ensure a flow of city funds for its Skyline rail project.
After the first payment of $125 million arrived in April 2024, HART received an additional $250 million Aug. 15 by awarding the construction contract on the final planned half-mile, overhead rail segment and City Center station in Kakaako, said Lori Kahikina, HART’s CEO and executive director.
“At this time there are no concerns regarding the remaining federal funding committed through the amended Full Funding Grant Agreement,” Kahikina said in a written statement. “HART continues to have strong relationships with our Hawaii congressional delegation and the Federal Transit Administration, and will continue to work closely with them on matters pertaining to the rail project.”
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She expects another $125 million by completing the rail station and guideway at Daniel K. Inouye International Airport, followed by another $125 million after completing HART’s utility relocation project for the City Center station and guideway, followed by an additional $119 million in fiscal year 2027.
The full 19-station, 18.9 mile route from East Kapolei to the Civic Center station in Kakaako is scheduled for completion in 2031.
The acting head of the Federal Railroad Administration last week wrote California’s high-speed rail authority that it should expect to lose its $4 billion in federal funding following years of delays and billions in cost overruns.
