Trump Rescinds $4 Billion Funding for California High-Speed Rail

By David Shepardson

WASHINGTON (Reuters) – U.S. President Donald Trump announced on Wednesday that the Transportation Department is rescinding $4 billion in government funding for California’s High-Speed Rail project.

“This project was severely overpriced, overrregulated, and never delivered,” Trump stated in a social media post. “The railroad we were promised still does not exist and never will.”

In a separate statement, the Transportation Department indicated there was no viable path forward for the project, suggesting additional funding may also be rescinded, labeling it “grossly over budget.”

California officials have termed the action illegal, marking yet another confrontation between Trump and the state on various issues, including transgender athletes, electric vehicle regulations, and the National Guard’s use in Los Angeles.

“California is putting all options on the table to fight this illegal action,” California Governor Gavin Newsom asserted in a statement.

The Federal Railroad Administration recently released a 315-page report highlighting missed deadlines, budget shortfalls, and questionable ridership projections. Key concerns noted include California’s failure to secure an additional $7 billion needed to complete an initial 171-mile segment from Merced to Bakersfield, with no track having been laid yet.

The California High-Speed Rail System is envisioned as an 800-mile (1,287 km) railway, connecting San Francisco to Los Angeles, Anaheim, and later extending to Sacramento and San Diego, with speeds potentially reaching 220 miles per hour.

Originally planned for completion in 2020 at a cost of $33 billion, the project’s estimated budget has now escalated from $89 billion to $128 billion.

“Canceling these grants without cause isn’t just wrong — it’s illegal,” argued California High-Speed Rail Authority CEO Ian Choudri, asserting that the Authority has met all obligations. “This is no time for Washington to walk away on America’s transportation future.”

The Authority further noted that the project is nearing the track-laying phase with 171 miles under active construction and design, creating 15,500 jobs and completing over 50 major structures.

Newsom has a budget proposal awaiting legislative approval to allocate at least $1 billion annually for the next 20 years to ensure the project’s initial operational segment’s completion.

On social media, Transportation Secretary Sean Duffy branded Newsom and California’s high-speed rail project as the epitome of government incompetence and potential corruption. Newsom replied, stating, “Won’t be taking advice from the guy who can’t keep planes in the sky.”

Voters endorsed $10 billion for the endeavor in 2008, and about $4 billion was awarded by the Transportation Department under former President Joe Biden. In 2021, Biden reinstated a $929 million grant for the high-speed rail, previously revoked by Trump in 2019 after he deemed the project a “disaster.”