White House rescinds $4 billion in funding for California high-speed rail
The Trump administration has officially canceled federal funding for California’s high-speed rail project.
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WASHINGTON, DC – California has dropped a lawsuit challenging President Donald Trump’s decision to cancel more than $4 billion in federal aid for high-speed rail projects in the state, the state announced late Friday.
The California High-Speed Rail Authority, which filed the lawsuit in July, said the decision to abandon the case reflects “the state’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in promoting California’s high-speed rail.”
The agency said it plans to proceed without federal funds, adding that only 18 percent of the long-delayed project’s program spending comes from federal funds. A judge this month denied a motion to dismiss the case.
The Federal Railroad Administration released a 315-page report in June that found the project had missed deadlines, was underfunded and had questionable ridership projections. The U.S. Department of Transportation announced on Saturday, Dec. 27, that an FRA investigation demonstrated that after more than 15 years, the California High Speed Rail Authority “is unable to deliver on its high-speed rail commitments on time or on budget.”
The department added: “America’s tax dollars will no longer be wasted anywhere on this train, but will instead support real projects that improve the lives of rail passengers, local drivers, and pedestrians.”
Projects suffer from delays and cost overruns
California Gov. Gavin Newsom (D) said in July that the Trump administration’s decision to cut the subsidy amounts to “petty political revenge motivated by President Trump’s personal animosity toward California and high-speed rail projects, not the facts on the ground.”
The funding cuts are the latest hurdle in a 16-year effort to connect Los Angeles and San Francisco in three hours by train, providing the fastest passenger rail service in the United States. The project was originally scheduled to cost $33 billion and be completed by 2020, but is now projected to cost between $89 billion and $128 billion and is expected to be in service by 2033.
The rail system, whose first bond issue was approved by California voters in 2008, has constructed more than 50 major rail structures, including bridges, overpasses, undercrosses and viaducts, and completed nearly 130 miles of track for the project.
In August, the Department of Transportation canceled another $175 million for four projects that are part of the high-speed rail plan, following the cancellation of $4 billion in federal aid.
The California state agency announced this week that it will begin the process of attracting private investors and developers by summer 2026. The agency said Friday, Dec. 26, that the loss of federal funding will not derail the project or construction, adding that progress is being made.
The agency noted that the bill signed in September would set aside $1 billion annually for the program through 2045, and said “states are moving forward without an end, rather than continuing to spend time and money toward an end.”
President Trump canceled $929 million in federal aid during his first term, which was challenged by states, but was settled in 2021 by Democratic President Joe Biden, who refunded the entire amount.
(Reporting by David Shepardson in Washington; Editing by Matthew Lewis)
