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Trump Administration Targets California High-Speed Rail Project for Investigation and Funding Withdrawal

2/21/2025
The Trump administration is investigating California's high-speed rail project and considering withdrawing $4 billion in federal funding due to cost overruns and delays. State officials are focusing on a 171-mile stretch connecting Bakersfield and Merced, with the entire project now estimated to cost $106 billion.
Trump Administration Targets California High-Speed Rail Project for Investigation and Funding Withdrawal
Discover how the Trump administration's investigation into California's high-speed rail project could impact its future as funding challenges and delays continue. Learn about the project's cost overruns and the potential withdrawal of federal funding.

Trump Administration Scrutinizes California High-Speed Rail Project

LOS ANGELES (AP) — The Trump administration is once again placing California’s controversial high-speed rail project under the microscope. On Thursday, federal transportation officials announced an investigation that could potentially lead to the withdrawal of approximately $4 billion in federal funding.

History and Challenges of the High-Speed Rail Project

Initially approved by voters in 2008, the project was designed to transport riders between San Francisco and Los Angeles in under three hours. Originally estimated to cost $33 billion and slated for completion by 2020, the project has encountered significant funding challenges, cost overruns, and delays.

State officials are now concentrating efforts on a 171-mile (275-kilometer) segment connecting Central Valley cities like Bakersfield and Merced, aiming for operation by 2033. Completing the entire San Francisco to Los Angeles line is now projected to cost $106 billion, with hopes to finish within the next 20 years, contingent on available funding.

Federal Funding and Review

“I am directing my staff to review and determine whether the California High-Speed Rail Authority has adhered to its commitments to receive billions in federal funding. If not, I will consider reallocating that money to other deserving infrastructure projects across the United States,” stated Transportation Secretary Sean Duffy at a Los Angeles press conference.

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

The potential loss of funding would pose a significant setback. The rail authority’s latest business plan relies on acquiring up to $8 billion in federal support to bridge a funding gap.

Responses and Reactions

Ian Choudri, CEO of the California High-Speed Rail Authority, which oversees the project’s planning and funding, expressed support for the investigation. “With multiple independent federal and state audits completed, every dollar is accounted for, and we stand by the project’s progress and impact,” Choudri stated. The project has reportedly created nearly 15,000 jobs and completed over 50 major structures.

Republican Congress members, including Rep. Kevin Kiley, have criticized the project’s costs. Representing the 3rd Congressional District, Kiley called the rail project “the worst public infrastructure failure in U.S. history” and introduced a bill to make it ineligible for further federal funding.

Kiley joined Duffy at Los Angeles’ Union Station for the announcement of the probe, amidst interruptions by about 30 demonstrators chanting “build the rail!” and displaying signs like “CA has no king” and “Don’t delay our train.”

Public Support and Advocacy

Eli Lipmen, executive director of Move LA, supports the project, indicating its popularity among many Californians. “They said they’re going to start an investigation, but come on, this is a sham investigation,” Lipmen commented during the announcement.

Greg Regan and Shari Semelsberger, leaders of the Transportation Trades Department coalition, which includes all U.S. rail unions, described the project as the most ambitious and innovative transportation initiative in the country. They urged Trump to act as a “Builder-in-Chief by bringing high-speed rail to America.”

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