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4d ago

Trump administration threatens to pull $4 billion in federal funding from California high-speed rail

A 315-page federal review finds the project is over budget with no track laid, triggering a 37-day response deadline.

FILE - California High-Speed Rail Authority crews work at the Hanford Viaduct construction site, April 15, 2025, in Kings County, Calif. (AP Photo/Godofredo A. Vásquez, File)
A single bus makes its way through the bus level of the Salesforce Transit Center in San Francisco, in 2023. The building complex was designed with the intent high speed rail would eventually reach its basement.
A freight locomotive rolls across an intersection in Fresno, California January 6, 2015. REUTERS/Robert Galbraith/File Photo

Overview

  • The Department of Transportation’s 315-page compliance review finds that the Early Operating Segment faces a $7 billion funding gap and no credible plan to meet its 2033 completion target.
  • Federal Railroad Administration data show nearly $7 billion in federal grants was spent with zero miles of high-speed track laid in the Central Valley.
  • The project’s budget has soared from an initial $33 billion to over $100 billion following repeated delays and scope reductions.
  • Transportation Secretary Sean Duffy warned that California has 37 days to prove compliance or face termination of two federal grants totaling $4 billion.
  • Governor Gavin Newsom and the California High-Speed Rail Authority insist they remain committed to the project and have outlined state funding measures to cover shortfalls.