In this paper we examine the institutional and political obstacles tha
t have held back development of high speed rail (HSR) policies and pro
jects in North America, and the prospects for overcoming them. We demo
nstrate how national level institutions in both the U.S. and Canada co
uld sustain only weak and amorphous HSR policy networks. At the sub-na
tional level, we identify three funding formulas for HSR that failed t
o win broad enough political support to get projects off the drawing b
oard. We then asses the political risks and incentives that political
leadership must consider in building a broader HSR coalition, and high
light the importance of crafting a distributive benefits formula to en
sure that a broad range of new stakeholders will ''buy into'' HSR poli
cy.