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Posey Requests GAO Review the AAF Loan Application Over Any Potential Risk to Taxpayers

Washington, August 14, 2014 - Congressman Bill Posey (R-Rockledge) has written to the Comptroller General of the United States requesting that the Government Accountability Office (GAO) initiate its own viability study of the All Aboard Florida high speed rail project. Below is the text of his letter:

It is my understanding that the Federal Railroad Administration (FRA) – an operating entity of the U.S. Department of Transportation (DOT) –will soon issue a determination about providing a loan through the Railroad Rehabilitation and Improvement Financing program (RRIF) to All Aboard Florida (AAF).

Serving in the Florida legislature, and now in Congress, I have consistently opposed taxpayer subsidies for rail initiatives. I am therefore concerned about the potential exposure to taxpayers of all such projects including, but not limited to, the AAF application.

It is also my understanding that the GAO conducted a review of the Xpress West high-speed rail loan application when it was before the DOT in 2013. It was reported that the Xpress West proposal was rejected due to concerns about the viability of the loan following the GAO review. I believe it is well advised to have similar review for all significant loans where taxpayers are on the hook for any potential losses. As such, it is prudent for the GAO to evaluate the specific application by AAF.

I write to request that the GAO conduct a review of AAF similar to the GAO review conducted for Xpress West, examining the potential risk and cost to taxpayers, the nature of such a loan including possible interest rates that would be appropriate for this particular loan, and whether or not private financing could be sustained for this project. We have a duty to protect taxpayers, and this evaluation will help us uphold that duty.

Thank you for your prompt attention to this request.

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