On July 16, 2023, U.S. President Donald Trump announced via social media that the Transportation Department is rescinding a significant $4 billion in federal funding for California's ambitious High-Speed Rail project. Trump criticized the project as being "severely overpriced, overrregulated, and never delivered," stating, "The railroad we were promised still does not exist and never will."
In a follow-up statement, the Transportation Department indicated that there was "no viable path forward" for the High-Speed Rail initiative, which has faced numerous challenges. The department is also considering the possibility of clawing back additional funds, labeling the project as "grossly over budget."
The announcement has sparked strong reactions from California officials, who have deemed the action illegal. California Governor Gavin Newsom expressed his discontent, stating, "California is putting all options on the table to fight this illegal action." This incident marks yet another chapter in the ongoing tensions between Trump and California, which have included disputes over transgender athletes, electric vehicle regulations, and even the use of National Guard troops in Los Angeles.
The Federal Railroad Administration recently published a comprehensive 315-page report detailing critical issues plaguing the High-Speed Rail project. The report highlighted missed deadlines, budget shortfalls, and questionable ridership projections. A key issue is California's failure to secure an additional $7 billion needed to construct an initial 171-mile segment connecting Merced and Bakersfield.
The California High-Speed Rail System is designed to be a two-phase, 800-mile (1,287 km) network, with trains capable of reaching speeds up to 220 miles per hour. The project aims to connect major cities including San Francisco, Los Angeles, and Anaheim, with future plans to extend north to Sacramento and south to San Diego.
Originally, the San Francisco to Los Angeles segment was projected to be completed by 2020 at a cost of $33 billion; however, estimates have skyrocketed from $89 billion to an astonishing $128 billion.
California High-Speed Rail Authority CEO Ian Choudri criticized the decision to cancel the grants, stating, "Canceling these grants without cause isn’t just wrong — it’s illegal." He emphasized that these are legally binding agreements and that the Authority has fulfilled all its obligations. Choudri further noted that the project is nearing the track-laying phase, with 171 miles currently under active construction and design, leading to the creation of 15,500 jobs and the completion of over 50 major structures.
Governor Newsom is advocating for a budget proposal that would allocate at least $1 billion annually for the next 20 years to secure the necessary funding for the project’s initial operating segment. In a social media post, Transportation Secretary Sean Duffy criticized Newsom and labeled the California High-Speed Rail project as "the definition of government incompetence and possibly corruption." Newsom retorted, stating, "Won't be taking advice from the guy who can't keep planes in the sky."
The High-Speed Rail project has been a focal point of California's ambition to modernize its transportation infrastructure. Voters initially approved a $10 billion bond for the project back in 2008. Under the administration of former President Joe Biden, approximately $4 billion was allocated to the initiative. Notably, Biden restored a $929 million grant for California's high-speed rail in 2021, a grant that Trump had previously revoked in 2019, labeling the project a disaster.
As California navigates this contentious landscape, the future of the High-Speed Rail project remains uncertain amid ongoing legal battles and significant funding challenges.
