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11h ago

Federal Railroad Administration De-Obligates $4 Billion for California High-Speed Rail

Federal regulators cited a June compliance report that found no viable path to finish the project

A drone view of a California High-Speed Rail Bridge where it crosses through Fresno, California, U.S. June 8, 2025. REUTERS/Fred Greaves/File Photo
FILE - The Tied Arch Bridge construction site, which will take high-speed trains over State Route 43, April 15, 2025, in Fresno County, Calif. (AP Photo/Godofredo A. Vásquez, File)
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Overview

  • Federal support was withdrawn for the Central Valley phase, which spans 171 miles and has completed more than 50 rail structures and guideway segments.
  • Transportation Secretary Sean Duffy has directed the FRA to review remaining grants and consult the Justice Department on potentially reclaiming additional funds.
  • A 310-page June review identified budget shortfalls, missed deadlines and misleading ridership projections and concluded there is no viable completion path.
  • Governor Gavin Newsom and CHSRA CEO Ian Choudri denounced the de-obligation as illegal and vowed to pursue litigation.
  • State officials are weighing alternative financing options, including cap-and-trade revenues and public-private partnerships, to sustain Central Valley construction.