“The State of the Future” – first 220 mph electrified high-speed train system in the US. (Photo from the California High-Speed Rail Authority)
Trump administration moves to rescind federal funding from California’s high-speed rail project amid delays and cost overruns. State defends vision, future uncertain.
LOS ANGELES – In a sweeping rebuke of California’s embattled high-speed rail project, the Trump administration announced its intention to withdraw $4 billion in federal grants, citing the project’s prolonged delays, massive cost overruns, and failure to meet key milestones.
The Federal Railroad Administration (FRA) issued a formal notice on Tuesday, June 4, stating that the state has “no viable path forward” for the ambitious rail line, originally envisioned to connect San Francisco and Los Angeles in under three hours.
“Billions have already been spent with little to no results to show for it,” an FRA official said, adding that California had “materially failed to comply with the terms of the agreement.”
The Dream: Speed, Sustainability, and Connection
The California High-Speed Rail project was formally launched in 2008 when voters approved Proposition 1A, authorizing the state to issue $9.95 billion in general obligation bonds. Of this amount, $9 billion was designated for planning and constructing a high-speed passenger train system, while $950 million was set aside for capital improvements to local and regional transit systems that would connect with high-speed rail.
The vision called for a fully electrified rail network that would eventually span about 800 miles across the state, linking major metropolitan areas including San Francisco, Los Angeles, Anaheim, Sacramento, and San Diego.
The project’s first phase—approximately 500 miles between San Francisco and Anaheim via the Central Valley—was initially projected to be completed by 2020 at an estimated cost of $33 billion.
Promising to cut travel times, reduce greenhouse gas emissions, and ease congestion on highways and in airports, the rail system was positioned as a transformative investment in California’s future. It was also intended to promote sustainable growth by encouraging denser urban development around planned station hubs.
“High-speed rail will help California meet its climate goals while creating thousands of jobs and connecting underserved regions,” the California High-Speed Rail Authority wrote in its first business plan in 2009.
But while the dream remains alive, the realities of implementation have proven far more complicated.
The Reality: Delays, Deficits, and Doubts
Construction is currently concentrated in the Central Valley, specifically a 171-mile segment between Merced and Bakersfield. Though 119 miles are under construction, the segment is not operational, and no train tracks have been laid as of June 2025.
Originally slated for completion by 2020, the entire route’s revised timeline now stretches to at least 2033. Estimated costs have ballooned from $33 billion to as high as $128 billion, depending on the scope of completion.
To date, the California High-Speed Rail Authority (CHSRA) has spent over $14 billion—with about 82% of funding coming from state sources such as cap-and-trade revenues.
“This isn’t a 700-mile system anymore. It’s a 119-mile track to nowhere,” said House Transportation Committee Chair Sam Graves (R-MO) in a statement supporting the funding withdrawal.
Biden Reinstated, Trump Now Seeks to Revoke
In 2019, the first Trump administration previously attempted to rescind federal grants, but the Biden administration reversed that decision in 2021, restoring nearly $1 billion and providing an additional $3.3 billion to jumpstart construction.
Now, under a second Trump term, the administration argues the federal investment is no longer justifiable.
An FRA audit cited multiple instances of noncompliance and delays, emphasizing that the state failed to present an updated, financially feasible business plan that ensures timely completion. California has 30 days to respond to the FRA’s latest findings and attempt to preserve the funding.
The State’s Defense
California Governor Gavin Newsom condemned the administration’s move, calling it “political retribution” and reaffirming the state’s commitment to the project.
“We’re not abandoning high-speed rail. We’re doubling down,” Newsom said in a press briefing. “We’ve created over 109,000 job-years of employment and are building the backbone of a system that will define sustainable transit for generations.”
The Governor’s May budget proposal includes a pledge to allocate $1 billion annually for the next 20 years to keep the project moving forward—though critics argue the project still lacks sufficient private investment and financial transparency.
Newly appointed CHSRA CEO Ian Choudri, a former international rail executive, has promised to stabilize timelines, attract private partners, and improve cost control.
Economic and Environmental Stakes
Supporters point to the Central Valley segment as a critical step toward building regional equity. An operational Merced-to-Bakersfield route would connect low-income, underserved communities with broader job markets and educational centers.
According to a 2025 report by the High-Speed Rail Authority, the project has already contributed $8 billion in labor income and supported over 10,000 construction jobs annually. The agency also projects long-term reductions in vehicle miles traveled, air pollution, and oil dependency.
“This isn’t just about getting from point A to B,” said UCLA transportation researcher Julia Munsayac. “It’s about shaping the state’s economic and climate future.”
What’s Next
With the $4 billion now hanging in the balance, California faces a critical month. A formal response from the state is expected by July 3. Failure to resolve the dispute could set back the project by years—or permanently derail it.
While the 119-mile Central Valley portion may still be completed with state funds, the vision of a bullet train linking Northern and Southern California remains, for now, more promise than progress.
Quick Facts: California High-Speed Rail
• Proposed Route: San Francisco → Los Angeles → Anaheim (Phase 1); extensions to Sacramento and San Diego (Phase 2)
• Original Cost Estimate (2008): $33 billion
• Current Estimate: $89–$128 billion
• Voter Approval: 2008 via Proposition 1A
• Jobs Created: Over 109,000 job-years (as of 2025)
• Current Status: 119 miles under construction in Central Valley
• Projected Operational Date for Merced-Bakersfield segment: 2031–2033
• Lead Agency: California High-Speed Rail Authority (CHSRA)
