Officials with SEPTA said funding, inflation and high interest rates were to blame for the pause on the King of Prussia Rail project.
On March 17, SEPTA announced the project would be placed on hold after estimated costs for it rose from $2.08 billion to more than $3 billion. Every year of delay, officials said, raises the cost by approximately $100 million, which is exacerbated by inflation and higher interest rates.
SEPTA officials said administrators with the Federal Transit Administration had raised concerns about whether SEPTA could fund its share of the project, including any cost overruns. SEPTA said its capital budget is constrained compared to other transit agencies.
“SEPTA’s capital budget has been underfunded for decades. This has left the Authority with significantly fewer resources than peer agencies to pursue system expansion while also addressing critical infrastructure needs,” SEPTA General Manager and CEO Leslie S. Richards said. “With the funding we have currently, SEPTA must prioritize essential infrastructure work and safety and security improvements to maximize the reliability and effectiveness of our aging system.”
Because of the FTA’s concerns, the project was not recommended for funding in Fiscal Year 2024, SEPTA said. The project would have extended the Norristown High Speed Line (NHSL) for four miles into King of Prussia and provided residents with one-seat rides from any station along the NHSL into King of Prussia.
The announcement brings the project to a standstill and SEPTA officials said it will use resources allocated for KOP Rail on other infrastructure projects.
“This process further highlights the critical need for new transit funding at the state and local levels,” Richards said. “In order to pursue any service extensions in the future, SEPTA needs more support.”