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Home»Business»Trump admin cuts $4 billion from California high-speed rail undertaking
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Trump admin cuts $4 billion from California high-speed rail undertaking

Buzzin DailyBy Buzzin DailyJuly 17, 2025No Comments5 Mins Read
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Trump admin cuts  billion from California high-speed rail undertaking
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Trump will get set to defund California’s high-speed rail

California’s embattled high-speed rail undertaking suffered a significant setback after Transportation Secretary Sean Duffy introduced the termination of $4 billion in unspent federal funding by the Federal Railroad Administration (FRA).

Citing 16 years of failure, no accomplished high-speed observe, and escalating prices, Duffy declared the undertaking, dubbed the “practice to nowhere,” a mismanaged and over-budget “boondoggle.”

“That is California’s fault. Governor Newsom and the complicit Democrats have enabled this waste for years. Federal {dollars} aren’t a clean verify – they arrive with a promise to ship outcomes,” Duffy stated in a press release. 

The announcement adopted months of scrutiny after a complete compliance overview, plus failed makes an attempt by the California Excessive-Velocity Rail Authority (CHSRA) to handle severe undertaking deficiencies. 

TRUMP V. CALIFORNIA: SANCTUARY CITIES TO EV BANS, TRUMP PUTS LEFT-WING STATE UNDER REPEATED SCRUTINY

“After over a decade of failures, CHSRA’s mismanagement and incompetence has confirmed it can’t construct its practice to nowhere on time or on funds. It’s time for this boondoggle to die. President Trump and I’ll at all times battle to make sure your tax {dollars} solely go to tasks that accomplish nice, large, stunning issues.” 

– Transportation Secretary Sean Duffy 

The overview discovered that zero miles of high-speed observe have been laid since floor was damaged 10 years in the past, and the fee continues to balloon.

President Donald Trump, echoing Duffy’s sentiment, additionally referred to the undertaking as a “boondoggle.” 

“To the Regulation abiding, Tax paying, Hardworking Residents of the US of America, I’m thrilled to announce that I’ve formally freed you from funding California’s disastrously overpriced, “HIGH SPEED TRAIN TO NOWHERE,” Trump wrote in a put up on his social media platform, Reality Social. 

DUFFY MOVES TO DEFUND CALIFORNIA HIGH-SPEED RAIL AFTER BLISTERING FEDERAL REVIEW

Avenue 15 grade separation beneath development throughout a high-speed rail undertaking in Madera County, California, U.S., on Monday, April, 18, 2022. (David Paul Morris/Bloomberg through Getty Photos / Getty Photos)

“This boondoggle, led by the incompetent Governor of California, Gavin Newscum, has value Taxpayers A whole lot of Billions of {Dollars}, and we’ve got acquired NOTHING in return besides Price Overruns. The Railroad we had been promised nonetheless doesn’t exist, and by no means will,” Trump continued.

“This undertaking was Severely Overpriced, Overregulated, and NEVER DELIVERED. Due to Transportation Secretary Sean Duffy, not a SINGLE penny in Federal {Dollars} will go in the direction of this Newscum SCAM ever once more. This was an ill-conceived and pointless undertaking, and a complete waste of Taxpayer cash — However no extra!”

Rep. Kevin Kiley, R-Calif., creator of H.R. 213, laws to ban additional federal funding for Excessive-Velocity Rail, applauded the transfer.

“California Excessive-Velocity Rail is the worst public infrastructure catastrophe in U.S. historical past,” Kiley stated. 

“A undertaking that was imagined to be completed 5 years in the past at a value of $33 billion is now projected to take till the tip of the century at a price of $130 billion. I’m grateful that President Trump and Secretary Duffy are sparing our taxpayers by slicing off federal funding. The state should now comply with go well with, wind this disastrous undertaking down, and spend our transportation {dollars} the place they’re wanted: our roads.”

California Governor Gavin Newsom took a jab at Duffy on X, saying he’d take recommendation from others over the transportation secretary.

“Received’t be taking recommendation from the man who can’t maintain planes within the sky,” Newsom wrote.

Newsom’s workplace additionally launched a press release in response to the “Trump administration illegally terminating federal grant agreements funding California high-speed rail.”

“Trump needs handy China the longer term and abandon the Central Valley. We gained’t let him. With tasks just like the Texas high-speed rail failing to take off, we’re miles forward of others,” Newsom wrote. 

“We’re now within the track-laying section and constructing America’s solely high-speed rail. California is placing all choices on the desk to battle this unlawful motion,” he continued. 

The Division of Transportation (DOT) added that it could additionally pursue restoration of beforehand disbursed funds and potential authorized motion. 

DUFFY CLASHES WITH DEMOCRATS OVER DEI FUNDING CUTS, DENIES AIR TRAFFIC CONTROLLERS LET GO

High-speed rail construction

The Elkhorn grade separation beneath development throughout a high-speed rail undertaking in Fresno County, California, on Monday, April, 18, 2022.  (David Paul Morris/Bloomberg through Getty Photos / Getty Photos)

Along with canceling $4 billion in unspent federal funds to CHSRA, Duffy directed FRA to overview different obligated and unobligated grants associated to the CHSRA undertaking.

The 300-page damning report, launched again in June, examined the undertaking and located delays, missed deadlines, mismanagement, waste, skyrocketing prices, funds shortfalls and overrepresentation of projected ridership. 

Different key findings revealed that the undertaking confronted ongoing — and certain growing — contractor value overruns attributable to delays and that the CHSRA did not finalize contracts for its high-speed trainsets on time. 

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The undertaking was initially touted as a two-phase visionary system connecting Los Angeles to San Francisco, and later north to Sacramento, and south to San Diego.

The report states that regardless of the cash already plowed into the undertaking, there’s a $7 billion funding hole to finish a subset of the primary section within the Central Valley from Merced to Bakersfield, referred to as the Early Working Section (EOS).

Because the undertaking’s inception, it has been dramatically lowered from an 800-mile section to a 171-mile section. 

Fox Information Digital’s Michael Dorgan contributed to this report. 

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