Trump administration pulls plug on $4 billion for California high-speed rail
The Trump administration on Wednesday , calling it a "boondoggle" plagued by years of mismanagement, delays, and skyrocketing costs.
U.S. Transportation Secretary Sean P. Duffy announced the termination of funds following a comprehensive 315-page compliance review by the Federal Railroad Administration (FRA) released in June. The review concluded that the California High-Speed Rail Authority (CHSRA) could not meet its obligations under the federal grant agreements and has no viable plan to complete the project.
"This is California's fault. Governor Newsom and the complicit Democrats have enabled this waste for years. Federal dollars are not a blank check – they come with a promise to deliver results... It's time for this boondoggle to die," Duffy said.
In a 22-page letter sent to the CHSRA, the FRA said the decision to terminate funding is effective immediately. The DOT said that roughly $15 billion has been spent on the project, with not a single mile of high-speed rail track laid.
California Gov. Gavin Newsom sharply condemned the Trump administration's decision to revoke the funding, calling it "illegal" and a betrayal of American infrastructure in favor of foreign competitors.
"Trump wants to hand China the future and abandon the Central Valley. We won't let him," Newsom said hours after Duffy's announcement.
China has the largest and fastest high-speed rail system in the world. California would be the first U.S. state to have high-speed rail upon completing the project, which was initially projected to be finished by 2020.
Newsom said the state is "putting all options on the table" to challenge the administration's move.
Based on its compliance review, the FRA cited nine key findings, including a $7 billion funding gap to complete that Merced-Bakersfield stretch, missed procurement deadlines, and overrepresented ridership estimates. , pointing to Newsom's proposal to extend the state's Cap-and-Trade program, "which would guarantee at least $1 billion annually through 2045."
The project, which he said is now entering its track-laying phase, has more than 171 miles under active construction between Merced and Bakersfield and over 50 major structures completed, including bridges and viaducts. The CHSRA , up from an initial estimate of $33 billion. California's high-speed rail was projected to be completed by 2020.
CHSRA CEO Ian Choudri echoed the governor's stance, pointing to what he described as major progress on the project.
"These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025," Choudri said. "America's only high-speed rail project underway is fast approaching the track-laying phase, with 15,500 jobs created and 60 miles of guideway already complete."
Newsom said the CHSRA has completed all environmental clearances across the entire 463-mile corridor from Los Angeles to San Francisco. The Governor's Office noted other progress that included "the electrification of Caltrain complete, trainset selection underway, station and track construction on deck, [and] continued work with partner rail systems to create a southwest regional high-speed rail network."
"This is no time for Washington to walk away from America's transportation future," Choudri added.
Duffy also instructed the FRA to begin reviewing other state and federal funds tied to the project, including obligated and unobligated grants. Duffy said his department will consult with the Department of Justice to explore clawing back federal funds already spent and investigate any potential legal violations stemming from the CHSRA's handling of the project.
Democratic leaders, including and , have accused the Trump administration of using the review process of the high-speed rail project to punish California for political reasons. Following the compliance review, Rep. Dave Cortese (D-San Jose) called the Trump administration's intent to terminate funding "partisan theatrics" that seek to derail clean transportation.
Republicans, however, welcomed the FRA's decision. (R-Rocklin) and (R-Bakersfield) both called for an end to the project, with taxpayer funds being redirected elsewhere.
"California High-Speed Rail is the worst public infrastructure disaster in U.S. history," Kiley said. "A project that was supposed to be finished five years ago at a cost of $33 billion is now projected to take until the end of the century at a cost of $130 billion. I am grateful that President Trump and Secretary Duffy are sparing our taxpayers by cutting off federal funding. The state must now follow suit, wind this disastrous project down, and spend our transportation dollars where they are needed: our roads."
