Federal lawmakers agreed Thursday to give Honolulu’s planned rail project its full $250 million funding share for 2014 — the single largest grant for any new startup project in the nation, officials say.
The U.S. House and Senate appropriations committees each approved the amount for the coming fiscal year, part of the federal government’s six-year, $1.55 billion funding deal for rail reached in December with the Honolulu Authority for Rapid Transportation. The agreement by both chambers eliminates any need to work out the project’s funding in a conference session.
"This lives through the great work of our senior senator, Dan Inouye, who passed away back in December," Mayor Kirk Caldwell said Thursday. Inouye, who represented Hawaii in Congress for more than 50 years, "worked so hard to get the full funding grant agreement in place," Caldwell said, adding, "(It) was signed a few days after his death."
Last year, before the rail project received that grant agreement from the federal government, the House Appropriations Committee had included only $100 million in its measure, and rail officials said they had to push to eventually restore the project’s full $250 million share.
There were no such surprises in Washington this year. Having a federal funding deal in place "changes the dialogue," Caldwell said. "It changes the commitment."
The appropriation is still subject to votes on the House and Senate floors, and President Barack Obama’s final approval.
The approvals came the same day Charlotte, N.C., Mayor Anthony Foxx was approved as the nation’s new transportation secretary, replacing Ray LaHood. Foxx has assured Hawaii lawmakers that he’ll work to complete the rail project.
Rail officials in Honolulu and members of Hawaii’s congressional delegation said Thursday’s developments indicate the island’s rail effort is proceeding smoothly.
"I am happy with the progress we have made today," U.S. Sen. Brian Schatz said in a statement.
U.S. Sen. Mazie Hirono and U.S. Rep. Tulsi Gabbard also lauded the appropriations approvals.
"In these difficult economic times, when decisions about federal funding remain highly competitive, these actions by the House and Senate appropriations committees demonstrate that support for Honolulu’s rail project remains solid," Hirono said in a statement.
For fiscal year 2013, federal officials ultimately wound up providing $14 million less than anticipated because of budget sequestration cuts. However, city rail officials and lawmakers said they’ve received assurances that those dollars will be made up in subsequent years of the funding deal.
The total project is expected to cost $5.26 billion, with the majority being covered by an Oahu general excise tax surcharge.
The dollars dedicated to the project Thursday by Congress will be set in an account in Washington that’s drawn down as HART requests reimbursement for expenses, with the federal government covering about 30 percent of the total project costs, HART CEO Dan Grabauskas said.
Construction of the 20-mile rail line was stalled last year by a lawsuit contending that city and state officials did not comply with state historic preservation laws. The state Supreme Court agreed.
Meanwhile, rail opponents are still working to stop the project with an appeal before the U.S. 9th Circuit Court of Appeals that’s expected to be heard later this summer.
However, rail officials say they are preparing to resume construction this fall, and the spending is expected to significantly accelerate.
Federal lawmakers "know we’re diligent and we’re working to get back to construction, and we’re addressing all the issues that the Supreme Court and the federal court put before us," Grabauskas said Thursday. "It’s a significant step forward. … We’re looking forward that much more to getting this project in and built for the community here in Oahu."
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