Transportation Inspector General Begins High-Speed Rail Audit Following Denham Request

Press Release

The U.S. Department of Transportation's Office of the Inspector General today announced the initiation of an audit of the Federal Railroad Administration's (FRA) high speed intercity passenger rail grant amendment and oversight processes in response to a request made by Chairman Denham of the Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials.

"I am pleased to see the Inspector General undertaking this audit of the FRA's agreement process," said Rep. Denham. "The FRA has twice altered their grant agreement with the California High-Speed Rail Authority, putting taxpayer dollars at risk. I've received no reassurance that they won't repeat the process, and their recklessness has put other California funding priorities at risk. As I and the subcommittee work to protect taxpayer funds, this audit will be another tool to ensure the FRA is doing the same."

Mitchell Behm, the Department of Transportation's Assistant Inspector General for Rail, Maritime, Hazmat Transport, and Economic Analysis, notes in his letter to the FRA that their "lack of an effective grants administration framework may be putting Federal funds at risk." Behm writes that the audit's objectives will be "to evaluate FRA's policies, procedures, and processes for (1) amending HSIPR grant agreements, and (2) identifying and mitigating funding risks to federally-funded HSIPR projects."

The audit is set to begin immediately. Chairman Denham's letter requesting the IG's audit is available online here. The Office of the Inspector General's full announcement is available online here.

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