Federal Government Cuts $4 Billion in Funding for California High-Speed Rail Amid Soaring Costs

Washington D.C. – U.S. Secretary of Transportation Sean Duffy announced today, July 17, 2025, the withdrawal of $4 billion in federal funding for California's beleaguered high-speed rail project, labeling it a "boondoggle" and a "train to nowhere." The decision, supported by President Donald Trump, cites the project's massive cost overruns and persistent delays, which have seen its estimated price tag balloon from an initial $33 billion to as high as $135 billion, with no clear completion date in sight.

Secretary Duffy, a vocal critic of the project, articulated the administration's stance in a social media post, stating, "Governor Newsom and California’s high speed rail boondoggle are the definition of government incompetence and possibly corruption. The price tag has gone from $33B to $135B with no completion date in sight. We could give every single LA & SF resident almost 200 free flights for that much. That’s why TODAY we’re pulling the plug on federal funding for this train to nowhere. I won’t help Gavin Newsom waste your money!"

The Federal Railroad Administration's termination letter highlighted the California High-Speed Rail Authority's (CHSRA) failure to meet critical milestones and a substantial funding gap. President Trump echoed Duffy's sentiment on Truth Social, declaring he had "freed" taxpayers from the "disastrously overpriced" project, asserting, "The Railroad we were promised still does not exist, and never will."

California officials swiftly condemned the federal action, with Governor Gavin Newsom calling it "illegal" and vowing to explore "all options on the table" to fight the decision. CHSRA CEO Ian Choudri also stated that canceling the grants "without cause isn't just wrong—it's illegal," emphasizing that the Authority has met its obligations. Despite federal opposition, California remains committed to the project, currently in the track-laying phase on a 171-mile segment in the Central Valley.

The California High-Speed Rail project, approved by voters in 2008, was originally envisioned to connect San Francisco and Los Angeles by 2020. However, it has been plagued by management issues, legal challenges, and funding uncertainties, leading to its current estimated completion between 2031 and 2033 for just the initial operating segment. Secretary Duffy, who took office in January 2025, has prioritized accelerating project delivery and streamlining federal infrastructure spending, often criticizing projects he deems inefficient or overly costly.