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yesterday

Trump Administration Rescinds $4 Billion for California High-Speed Rail Project

Sean Duffy pulled federal funding based on an FRA finding of grant defaults, prompting California to sue as construction proceeds on 171 miles of the line

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

  • Secretary Duffy terminated roughly $4 billion in unspent federal grants after a 315-page FRA compliance review found the project in default of its award terms and lacking capacity to deliver by 2033.
  • The FRA identified nine areas of noncompliance, including missed procurement deadlines and a $7 billion funding gap for the initial 171-mile Central Valley segment.
  • Governor Gavin Newsom and CHSRA CEO Ian Choudri have labeled the revocation illegal and launched legal challenges to restore the funds.
  • Construction continues on 171 miles of guideway with over 50 major structures complete as California taps state bonds, cap-and-trade revenues and private investors to fill the gap.
  • Duffy has directed the FRA to review other related grants and consider clawing back additional federal funds tied to the project.