In December 2016, an internal-use-only draft risk assessment produced by the Federal Railroad Administration was delivered to the California Rail Authority which warned that the ICS (Merced-Bakersfield) segment could cost as much as $9.5 billion instead of the $6.4 billion originally budgeted, if certain challenges weren't addressed, including delays in environmental planning, lags in processing invoices and failures to acquire needed property. Federal Railroad Administration spokesman Matthew Lehner said that the draft risk assessment "is a standard oversight tool used on major capital projects — not just California", and he is confident the state can meet its deadline with continued focus and hard work. Concern over the article prompted the Authority to send a letter on January 13, 2017 to the Legislature that said that the characterization of cost overruns, delays, and potential lapses of funds are not borne out by the facts, and that other key federal findings were ignored. After downplaying risks of cost overruns, in January 2018 the Authority acknowledged that cost estimates for the initial segment had increased to $10.6 billion.