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Trump Administration Reviews California High-Speed Rail Spending

Transportation Secretary Sean Duffy announced a federal compliance review into the $128 billion project plagued by delays and cost overruns.

U.S. Sec. of Transportation Sean Duffy announced plans on Feb. 20, 2025 to audit federal funding for California's high-speed rail project. This Feb. 26, 2015 file photo shows a full-scale mock-up of a high-speed train, displayed at the Capitol in Sacramento, Calif. (AP Photo/Rich Pedroncelli, file)
Sean Duffy hosts seen on Fox Business Network Studios on October 31, 2024, in New York City. (Photo by Steven Ferdman/Getty Images)
U.S. President Donald Trump arrives at the White House in Washington, D.C., U.S., February 19, 2025. REUTERS/Nathan Howard
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Overview

  • The Department of Transportation will scrutinize $4 billion in federal funding allocated to California's high-speed rail project and evaluate compliance with grant agreements.
  • Transportation Secretary Sean Duffy criticized the project, citing mismanagement and significant budget overruns, while protesters and labor leaders defended its progress and economic benefits.
  • The rail project, initially estimated at $33 billion, now exceeds $128 billion, with only a 171-mile Central Valley segment under construction and no completed sections to date.
  • The High-Speed Rail Authority claims the project has created over 14,000 jobs and generated $22 billion in economic impact, while federal officials question its viability and future funding needs.
  • Governor Gavin Newsom and state officials remain committed to the project, exploring connections with private initiatives like Brightline West to secure additional funding and expand the network.