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Home News Trump Administration Threatens to Cut $4B in Funding for California Rail

Trump Administration Threatens to Cut $4B in Funding for California Rail

by Celia

The Trump administration has renewed its opposition to California’s high-speed rail project, with federal transportation officials announcing an investigation into the potential withdrawal of approximately $4 billion in federal funding.

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Originally approved by voters in 2008, the $10 billion bond measure aimed to connect San Francisco and Los Angeles in under three hours. The project, projected to cost $33 billion and be completed by 2020, has faced significant funding issues, cost overruns, and delays.

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Currently, state officials are focusing on a 171-mile stretch between Bakersfield and Merced, which is expected to be operational by 2033. The full San Francisco to Los Angeles route is now estimated to cost $106 billion, with completion dependent on securing further funding.

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Transportation Secretary Sean Duffy stated that his team would review whether the California High-Speed Rail Authority has met its commitments for federal funding. If not, he warned that the money might be redirected to other infrastructure projects across the nation.

In 2019, President Trump canceled nearly $1 billion in federal funding for the project, a decision reversed by the Biden administration, which restored the funds and allocated an additional $3.3 billion in December 2023.

The potential loss of funding would severely impact the project, which relies on up to $8 billion in federal dollars to close its funding gap.

California High-Speed Rail Authority CEO Ian Choudri welcomed the investigation, emphasizing that independent audits have ensured full accountability of the project’s finances. He highlighted the creation of nearly 15,000 jobs and the completion of over 50 major structures.

Republican critics have repeatedly attacked the project, with Rep. Kevin Kiley calling it the “worst public infrastructure failure in U.S. history.” Kiley, who has proposed a bill to block further federal funding, said that taxpayers should not bear the project’s costs.

However, many Californians remain supportive of the project. Eli Lipmen, executive director of Move LA, dismissed the investigation as a “sham” and voiced the ongoing public backing for high-speed rail. Union leaders also defended the project, urging Trump to champion the development of a nationwide high-speed rail system.

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