Overview

• The Federal Railroad Administration has officially terminated approximately $4 billion in unspent grants after finding the project in default of its award terms.
• An FRA compliance review concluded the California High-Speed Rail Authority lacks the capacity to deliver its initial operating segment by the revised 2033 deadline.
• California continues construction on 171 miles of the Central Valley route using state bonds and cap-and-trade revenues while courting private investment to fill funding gaps.
• Governor Gavin Newsom denounced the termination as illegal and pledged to pursue court action alongside securing $1 billion annually from the cap-and-trade program.
• Transportation Secretary Sean Duffy has ordered a review of other related grants and signaled possible clawbacks of additional federal support.