High Speed Rail Policy in the United States

Abstract

The United States government has long been interested in high-speed rail (HSR) because of the enormous potential of a cross-country HSR network: namely promotion of regional economic growth, job creation, less congestion, and reduced oil dependency. Despite the promising social benefits HSR has yet to break ground in the US. Individual firms & profit seekers are not confident enough to invest in a federal high speed rail network. the federal government offers very little support in funding existing high speed rail projects, leading to low investor confidence. This paper argues that a substantial expansion of funds by the US federal government towards a federal High-speed Rail system will result in social benefits that significantly outweigh its social costs.