WASHINGTON, D.C. — The future of California’s long-delayed and costly high-speed rail project is in jeopardy after U.S. Transportation Secretary Sean P. Duffy announced today that the Federal Railroad Administration (FRA) is terminating about $4 billion in unspent federal funds earmarked for the CHSR project.
Not a single track has been laid to date
After 16 years and an estimated $15 billion already spent, the California High-Speed Rail Authority (CHSRA) has yet to lay a single mile of high-speed track. The project’s projected cost has ballooned to $128–135 billion — nearly four times its original $33 billion estimate — sparking frustration in Washington and fueling partisan tensions. In March this year the project was asking for an additional $7 billion in funding.
“This is California’s fault,” Secretary Duffy said in a pointed statement. “Governor Newsom and Democrats have wasted billions on a train to nowhere. Federal dollars are not blank checks — they must deliver results. After years of broken promises and mismanagement, it’s time for this boondoggle to die.”
The FRA’s decision follows an exhaustive compliance review that found the CHSRA failed to meet crucial deadlines and conditions tied to the grant agreements. According to the agency, California was given two opportunities to resolve these issues but failed to adequately address concerns about missed milestones and mounting costs.
In a letter to state officials, FRA acting Director Drew Feeley emphasized that the project would likely miss its 2033 target for completing its initial segment, disqualifying it for continued federal support.
Governor Gavin Newsom (D) swiftly condemned the move, framing it as an attack on California and a “gift to China.” “Trump wants to hand China the future and abandon the Central Valley,” Newsom said. “We won’t let him. We are already in the track-laying phase, building America’s only high-speed rail. California will use every option to fight this illegal action.”
What could happen next
The funding cut is expected to spark a protracted legal battle between the Biden administration’s Republican opponents and California’s Democratic leadership. It also highlights the growing political divide over large-scale infrastructure projects like the CHSR and the role of federal oversight and funding.
Newsom, a vocal critic of Trump and his allies, fired back on social media: “Won’t be taking advice from the guy who can’t keep planes in the sky.”
For now, the fate of America’s only high-speed rail line remains uncertain — and stuck on the drawing board.
