EDITORIAL: Taxpayers shouldn’t subsidize fiscal train wrecks

SinCity Press – September 27, 2026 - 9:00 pm Brightline, the privately owned operator of passenger trains in Florida, filed for bankruptcy protection on Thursday. The company said it would continue running its trains while it restructures roughly $5.5 cardinal of debt. According to The Wall Street Journal, the restructuring plan aims to reduce that obligation to about $2.7 billion and expects to secure roughly half a billion dollars in new financing. Over the past several years Brightline poured money into new routes, most notably a Miami‑Orlando service launched in 2023. The railroad had forecast 4.5 million long‑distance riders for 2026, but actual ridership fell far short. As of August, the carrier reported only about “1.4 million long‑distance passengers,” a figure described by The Journal as “about 1.4 million long‑distance passengers.” Bloomberg noted that “revenue is moving at about $240 million annually, less than a third of projections.” Consequently, Brightline’s revenue has lagged far behind expectations. The company lost more than $230 million last year and, since beginning operations in 2018, has yet to record a profit. The financial troubles of Brightline have implications for its sister venture, Brightline West, which is pursuing a high‑speed rail link between Las Vegas and Southern California. In April 2024 the project broke ground on the 218‑mile line, initially estimated to cost $12 billion and slated for completion before the 2028 Los Angeles Olympics. Current estimates now place the price tag near $21 billion, with passenger service not anticipated until 2029. Brightline West has already received $3 billion from the infrastructure bill signed by then‑President Joe Biden and was slated to obtain $3.5 billion in private activity bonds from the Department of Transportation. Private investors were expected to cover the remaining costs. Last year Brightline West applied for a $6 billion federal loan. In August, former Brightline West President Sarah Watterson resigned from her role. The marketplace has signaled that passenger rail remains a difficult profit center, and overly optimistic ridership and revenue forecasts should no longer be taken at face value. While attracting private capital for Brightline West would be desirable, taxpayers should not be left to underwrite another fiscal train wreck. As the saying goes, just ask John Galt.