Funding Cuts to California High-Speed Rail

By David Shepardson
(Reuters) – The U.S. Transportation Department announced it is canceling $175 million for four projects related to California’s high-speed rail after withdrawing $4 billion in federal grants for the delayed project in July.

The Trump administration stated it would revoke funding for grade separation, overcrossings, design work, and the construction of a high-speed rail station in Madera. California has filed a lawsuit against the funding withdrawal, labeling it illegal.

Tensions between President Donald Trump and California Governor Gavin Newsom have been escalating, as the USDOT also threatened to cancel $33 million in safety funding due to California not enforcing federal language rules for truck drivers.

These funding cuts add further obstacles to the effort to connect Los Angeles and San Francisco with a three-hour train ride, aiming to establish the fastest passenger rail service in the U.S.

The California High-Speed Rail Authority criticized the announcement as a politically motivated attack on the project, emphasizing the long-term vision for American transportation despite ongoing opposition.

Since California voters approved the first $10 billion bond in 2008, more than 50 major railway structures have been constructed, along with 70 miles (113 km) of guideway.

The funding withdrawal represents a continued conflict between the Republican president and a Democratic governor viewed as a potential 2028 presidential candidate.

The project, initially set for completion by 2020 at a cost of $33 billion, now faces projections of $89 billion to $128 billion, with service expected to begin by 2033.

Previously, Trump attempted to revoke $929 million in federal grants during his first term, but a settlement in June 2021 under President Joe Biden restored the funds.