Derailed

The U.S. Department of Transportation has halted consideration of a $5.5 billion loan for XpressWest to build the decades-old proposed high speed train from Las Vegas to Southern California.

“After several years of engagement with no resolution … and the significant uncertainties still surrounding the project, we have decided to suspend further consideration of XpressWest's loan request,” said a DOT letter, only part of which was released.

XpressWest responded that U.S. companies lack the expertise of those in nations where high speed trains already exist.

“As most people know, satisfying a 100 percent manufacture in America standard for XpressWest's trains is not required in the RRIF [Railroad Rehabilitation and Improvement Financing] loan rules and not commercially possible because there is NO high-speed train manufacturing base in the United States,” the company said in a prepared statement.

It went on, “Notwithstanding the [federal] position, XpressWest … will continue its plans to develop the first true high speed passenger rail system in the United States. XpressWest has always, and will continue to work with an international high-speed group from North America, Asia and Europe.”

Sen. Harry Reid plans to meet with the White House chief of state to press for a change in the decision.