Trump Administration Considers Cutting Federal Funding for California High-Speed Rail

The Trump administration is once again targeting California’s controversial high-speed rail project, with federal transportation officials on Thursday announcing an investigation and possible withdrawal of about $4 billion in federal funding.

Voters first approved $10 billion in bond money in 2008 for a project designed to shuttle riders between San Francisco and Los Angeles in less than three hours. It was slated to cost $33 billion and be finished by 2020. However, the project has been beset by funding challenges, cost overruns and delays.

Now, state officials are focused on a 171-mile stretch connecting the Central Valley cities of Bakersfield and Merced, which is set to be operating by 2033. The entire San Francisco to Los Angeles line will now cost an estimated $106 billion to finish.

“I am directing my staff to review and determine whether the (California High-Speed Rail Authority) has followed through on the commitments it made to receive billions of dollars in federal funding,” Transportation Secretary Sean Duffy said at a news conference in Los Angeles. “If not, I will have to consider whether that money could be given to deserving infrastructure projects elsewhere in the United States.”

President Donald Trump canceled nearly $1 billion in federal funding for the high-speed rail project in 2019, during his first term. The Biden administration later restored the funding and, in December 2023, allocated $3.3 billion more.

Losing federal support would be a major blow to the project. The rail authority’s most recent business plan counts on receiving up to $8 billion in federal money to help close a funding gap.

Ian Choudri, CEO of the California High-Speed Rail Authority, which oversees planning and funding for the project, said he welcomes the investigation.

“With multiple independent federal and state audits completed, every dollar is accounted for, and we stand by the progress and impact of this project,” Choudri said.

He said the project has created nearly 15,000 jobs and that more than 50 major structures have been completed so far.