President Trump Cancels $4 Billion in Federal Funding for California High-Speed Rail Project Amid Ongoing Administrative Actions

On Wednesday, Donald Trump announced that the transportation department is revoking $4 billion in US government funding for California’s high-speed rail project. According to the department, there is no viable path forward for California’s high-speed rail project, and they are considering recovering additional funding related to the project. A 315-page report issued by the Federal Railroad Administration last month highlighted missed deadlines, budget shortfalls, and questionable ridership projections as key issues. Additionally, California failed to identify $7 billion in additional funding needed for the construction of an initial 171-mile segment between Merced and Bakersfield. The California high-speed rail system is a planned two-phase 800-mile system, aiming to connect San Francisco to Los Angeles/Anaheim and extend north to Sacramento and south to San Diego in the second phase. The California High-Speed Rail Authority strongly disagrees with the administration’s conclusions, stating that they are misguided and do not reflect the substantial progress made in delivering high-speed rail in California. They also pointed out Governor Gavin Newsom’s budget proposal, which provides a minimum of $1 billion in funding per year for the next 20 years to complete the project’s initial operating segment. Active civil construction is currently underway along 119 miles in the state’s Central Valley. Transport Secretary Sean Duffy accused Newsom of government incompetence and possible corruption. Newsom responded on social media, saying he would not be taking advice from someone who cannot keep planes in the sky. In 2008, voters approved $10 billion for the project, but the costs have significantly increased. The entire San Francisco-to-Los Angeles project was initially supposed to be completed for $33 billion by 2020, but the costs have now risen to $128 billion. In 2021, the Biden administration reinstated a $929 million grant for the project that Trump had revoked in 2019, calling it a “disaster.”

Source: https://www.theguardian.com/us-news/2025/jul/16/trump-california-high-speed-rail-project-funding