A new Senate report has exposed more than $162 billion in cost overruns across a range of federally funded infrastructure projects, with taxpayers left footing the bill for years of delays and mismanagement.
The report, released by Sen. Joni Ernst (R-Iowa), singles out 14 major projects plagued by budget blowouts and scheduling failures. Among them is the expansion of the Harold Interlocking rail junction in Long Island City, Queens—originally estimated at $400 million, now projected to cost $1.4 billion. The project is intended to improve train traffic for Amtrak and the Long Island Rail Road but has suffered unexplained delays and design changes.
“Taxpayers have been taken for a ride by budget-busting boondoggles,” Ernst told The New York Post, blaming bureaucratic delays for stalling transparency. She is pushing for Congress to reclaim up to $13 billion in unspent federal funds after a $9 billion rescissions package passed earlier this month.
The two biggest offenders are California’s long-troubled high-speed rail project and the Department of Veterans Affairs’ electronic health records overhaul. The California rail line—initially estimated at $33 billion and set to be completed by 2020—has ballooned to at least $128 billion, with only a partial route between Merced and Bakersfield underway. The VA’s tech upgrade has also spiraled, now projected to cost $49.8 billion, up from an original estimate of $16.1 billion.
Other costly projects highlighted in the 48-page report include:
- Renovations at the Federal Reserve headquarters, with costs rising from $1.9 billion to $2.5 billion.
- Upgrades to Air Force One, now expected to cost $5.6 billion—$1.7 billion over the initial $3.9 billion deal negotiated during former President Donald Trump’s first term. The project is now running five years behind schedule.
- New Jersey’s Camden Direct Connection project, delayed from a 2021 completion to 2032.
- The planned restoration of the LIRR’s Rockaway Beach line, whose estimated cost has also tripled from $400 million to $1.4 billion.
Transportation Secretary Sean Duffy released the list of delayed and over-budget projects, many of which are tied to the 2021 Infrastructure Investment and Jobs Act. That law requires the Department of Transportation to report projects that are at least $1 billion over budget or five years behind schedule.
DOT officials cited legal challenges, supply chain disruptions, bureaucratic red tape, and last-minute design changes as common reasons for the overruns. One project in Honolulu paid $200 million to idle workers due to incomplete designs.
Sen. Ernst, who chairs the Senate DOGE Caucus, is advocating for two accountability measures: the Billion Dollar Boondoggle Act, which would require federal reporting on egregiously delayed and over-budget projects, and the Bogus Bonus Ban Act, which would block bonuses for contractors on failing projects.
“No more boondoggles,” said Duffy. “If you’re receiving taxpayer dollars, you should expect to be held accountable by the American people.”
