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Trump's High-Speed Rail Cuts: A $135 Billion Controversy Unfolds

7/17/2025
Trump's recent announcement about cutting federal grants for California's high-speed rail project has sparked outrage. Governor Gavin Newsom vows to fight back, claiming the move benefits China. With costs ballooning to $135 billion, the future of the project hangs in the balance.
Trump's High-Speed Rail Cuts: A $135 Billion Controversy Unfolds
Trump's cuts to California's high-speed rail funding spark outrage as costs soar to $135 billion. Governor Newsom vows to fight back, calling it a gift to China.

Trump's Controversial Announcement: Federal Grant Cuts and High-Speed Rail Project Challenges

On Wednesday, former President Donald Trump made a significant announcement regarding federal funding for California's ambitious high-speed rail project. This announcement follows a scathing report from the U.S. Transportation Department last month, highlighting severe issues with the development, including missed deadlines, budget shortfalls, and an overall overrepresentation of projected ridership.

The Transportation Department's report raised serious concerns, indicating that the rail project is unlikely to meet its 2033 completion target for its initial segment—an essential milestone for securing federal funding. Transportation Secretary Sean Duffy emphasized the project's escalating costs in a post on X, revealing that the project is now projected to cost a staggering $135 billion to complete. Additionally, Drew Feeley, the Acting Director of the Federal Railroad Administration, communicated in a letter to state officials that the project had failed to adhere to the terms necessary for receiving grant funding.

Cost Overruns and Project Delays

Originally estimated at $33 billion, the high-speed rail project’s costs have ballooned to an eye-watering $128 billion, nearly four times its initial budget. California Governor Gavin Newsom has vowed to fight back against the federal government's decision, describing it as a “gift to China.” In a passionate statement, Newsom declared, “Trump wants to hand China the future and abandon the Central Valley. We won’t let him.”

Newsom further asserted that California is ahead in the race for high-speed rail development, stating, “With projects like the Texas high-speed rail failing to take off, we are miles ahead of others. We’re now in the track-laying phase and building America’s only high-speed rail. California is putting all options on the table to fight this illegal action.”

Escalating Tensions Between Trump and Newsom

The revocation of federal grants is anticipated to instigate a lengthy court battle, further escalating the feud between Trump and Newsom, who has been a staunch proponent of high-speed rail for California. In a separate response on X, Newsom took aim at Secretary Duffy, stating, “Won’t be taking advice from the guy who can’t keep planes in the sky.”

As this situation unfolds, the implications for California's high-speed rail project could be profound, potentially impacting future investments and the state's transportation infrastructure. Spokespeople for California Attorney General Rob Bonta have not yet responded to requests for comment, leaving many questions unanswered about the next steps in this contentious battle.

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