Christmas came early for the city’s rail project when U.S. Sen. Brian Schatz announced Tuesday that he had secured $63.8 million in unexpected, surprise federal funding to help cover inflationary construction costs.

Officials with the Honolulu Authority for Rapid Transportation gave Schatz an update on the rail project Monday but were surprised when he announced nearly $64 million in new federal funding Tuesday.

“We had no idea this was in the works,” Lori Kahikina, HART’s CEO and executive director, told the Honolulu Star-Advertiser. “We were shocked, but so so grateful to Senator. We just don’t sit back and wait for handouts. We are so grateful.”

Schatz, chair of the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, worked with congressional leaders to secure the additional funding through the U.S. Department of Transportation’s capital improvement program.

Approval of the new funding is expected to be finalized before Christmas.

“The federal government has already committed millions of dollars into the rail project, so finding new money was no easy task,” Schatz said in a statement. “We fought hard to make sure Hawai‘i gets its fair share of federal dollars, and this new money will give HART more resources to cover inflationary costs and finally get this project up and running for the people of Honolulu.”

The previous plan was to build a 20-mile, 21-station route from East Kapolei to Ala Moana, but HART lacked the money to get there.

Instead, HART built in “conservative” estimates for inflationary costs and supply chain problems in its latest financial plan that was approved by the Federal Transit Administration, which would stop construction in Kakaako 1.25 miles and two stations short of Ala Moana Center.

The FTA’s approval of the latest plan allows HART to receive the federal government’s final share of $1.55 billion in funding, or $744 million.

The additional $64 million represents renewed confidence in HART, Kahikina said.

“This shows the confidence that we’ve turned it around, for the (congressional) delegation to have confidence to even try (for more federal funds),” Kahikina said.

Kahikina and Rick Keene, HART’s deputy executive director and chief operating officer, said they hope the additional $63.8 million also can be used to cover supply chain shortages.

Last week, construction along the so-called Dillingham Corridor uncovered old cast-iron sewer pipes that need to be replaced with upgraded plastic pipes, but not enough could be easily acquired for two to three months, Kahikina said.

So the Honolulu Department of Environmental Serv­ices — which Kahikina ran before taking over HART — dipped into its inventory with the provision that HART resupply EVS when more supply becomes available.

Having EVS step forward with materials prevented months of delays that likely would have led to cost overruns, Kahikina said.

The rail system continues to undergo so-called “trial running” testing to get it ready for turnover to the city for paid, fare ridership.

Hitachi Rail Honolulu has flown in technicians to fix a software problem discovered during testing in which communications can be made only between one automated train and one station, instead of throughout the entire system.

“That’s still an issue,” Kahikina said.

So far, 70% of 144 scenarios have been satisfied, and the goal remains to transfer the rail project to the city in March or April.

At the same time, five separate groups of engineers representing HART, the city, state, federal government and so-called engineer of record continue to work on a fix to cracks in 21 T-shaped “hammerheads” that sit atop rail pillars and support stations.

Cracks in all 21 hammerheads will be coated with epoxy that’s designed to fill the cracks and prevent further expansion.

Eight of the largest cracks — which are no wider than .08 inch — will have to be retrofitted with rebar to close the gaps.

Because the hammerheads support stations and not trains, trial running can continue, Kahikina said.

The goal is to get the cracks repaired by the transfer of the system to the city, she said.