By Ethan Caldwell 
President Donald J. Trump announced on Thursday that the U.S. Department of Transportation, under the leadership of Transportation Secretary Sean P. Duffy, is rescinding approximately $4 billion in federal funding previously allocated to California’s High-Speed Rail project. The decision follows a comprehensive review by the Federal Railroad Administration (FRA), which identified significant issues including missed deadlines, substantial budget overruns, and questionable ridership projections.
The California High-Speed Rail project, initially approved by voters in 2008 with an estimated cost of $33 billion and a completion date of 2020, has faced persistent challenges. Current projections estimate costs between $89 billion and $128 billion, with no operational high-speed rail lines completed and services not expected to commence before 2033. The FRA’s recent 315-page report highlighted a $7 billion funding shortfall for the 171-mile segment between Merced and Bakersfield, noting that no track has been laid despite over $15 billion already spent.
President Trump described the project as a “boondoggle” and a “train to nowhere,” stating, “This project was severely overpriced, overregulated, and never delivered. The hardworking taxpayers of America deserve better than to fund a mismanaged scam that has produced nothing but cost overruns.” Transportation Secretary Duffy echoed these sentiments, emphasizing that the project’s failure to meet federal grant obligations justified the termination of funds.
California officials, including Governor Gavin Newsom and California High-Speed Rail Authority CEO Ian Choudri, have criticized the decision, arguing that it is illegal and undermines legally binding agreements. Choudri noted that over 50 structures, including underpasses and viaducts, have been constructed, and the project has created 14,600 jobs. “Canceling these grants without cause isn’t just wrong—it’s illegal,” Choudri said, referencing federal reviews as recent as February 2025 that confirmed the Authority’s compliance.
The Trump administration has indicated it may review additional grants related to the project and is consulting with the Department of Justice to explore options for recovering previously allocated funds. Meanwhile, California officials remain focused on completing a 119-mile segment between Bakersfield and Merced by 2033 and plan to release an updated funding strategy to state lawmakers this summer.
Andreas Lundberg 
Dale Chaucer