The U.S. government has withdrawn $4 billion in funding from California’s high-speed rail project. President Donald Trump announced the decision, saying the project had no clear path forward.
The Department of Transportation said the move was due to repeated failures in meeting deadlines, rising costs, and uncertain future plans. The department is also considering taking back more money linked to the project.
A recent 315-page report by the Federal Railroad Administration outlined several problems. These included financial shortfalls, missed goals, and questions about how many people would actually use the train service.
One major issue is the $7 billion in missing funds needed to complete the first 171-mile stretch between Merced and Bakersfield. Without this money, the initial section cannot move forward.
The high-speed rail system was first planned as an 800-mile network. It was designed to connect San Francisco to Los Angeles, with later extensions reaching Sacramento and San Diego. Trains on the route would travel up to 220 miles per hour.
The rail authority in charge of the project disagreed with the administration’s view. They said the conclusions were wrong and did not consider the progress already made. They pointed to ongoing construction along 119 miles in the Central Valley as proof of movement.
California Governor Gavin Newsom’s budget proposal includes at least $1 billion in funding each year for the next two decades. Officials say this would be enough to finish the first operating segment of the line.
In response to the funding cut, Newsom posted on social media, criticizing Trump and defending the state’s efforts. He said he would not take advice from someone who can’t manage national air travel issues.
Transportation Secretary Sean Duffy criticized the project as a failure and even suggested there might be corruption involved. He referred to the rail effort as an example of poor government planning.
The rail project has faced growing problems since voters approved $10 billion for it back in 2008. At the time, the plan was to complete the entire route by 2020, with a total cost of $33 billion. But the cost has now ballooned to between $89 billion and $128 billion.
Under former President Joe Biden, the project received new life. In 2021, the Biden administration restored $929 million in grants that Trump had previously taken away in 2019. Trump had then labeled the effort a “disaster.”
Despite new support in recent years, the project still struggles. With the latest move to withdraw $4 billion, its future is once again in doubt. Unless California can close its funding gap and speed up construction, the vision of a high-speed rail link between major cities in the state may remain out of reach.
