The Trump administration terminated approximately $4 billion in unspent federal funding for California’s high-speed rail project today, prompting Gov. Gavin Newsom to vow the state will fight what he called an illegal action.
In a statement, Sean Duffy, secretary of transportation, cited project delays and cost overruns for the decision to pull federal grant funds after 16 years of development.
“This is California’s fault. Governor Newsom and the complicit Democrats have enabled this waste for years,” Duffy said. “After over a decade of failures, CHSRA’s mismanagement and incompetence has proven it cannot build its train to nowhere on time or on budget.”
Newsom issued a statement shortly after the announcement, calling the cancellation a “gift to China.”
“Trump wants to hand China the future and abandon the Central Valley,” Newsom said. “We won’t let him. 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.”
The funding termination comes as the California High-Speed Rail Authority says the project has entered the track-laying phase and is actively building across 171 miles. The authority reports completing more than 50 major railway structures — including bridges, overpasses and viaducts — and over 60 miles of guideway.
The statement from the U.S. Department of Transportation said the decision was made after an “exhaustive” 300-page report that found that the project could not meet binding obligations.
The review identified nine key findings, including that the authority has executed numerous change orders, missed its deadline for finalizing rolling stock procurement, and faces a funding gap of at least $7 billion to complete the initial operating segment.
Additional findings cited the authority’s reliance on volatile non-federal funding sources, inadequate budget contingency to cover anticipated contractor delay claims, and overrepresented ridership projections. The review concluded the rail authority does not have the capacity to deliver the initial operating segment by 2033.
The original plan, approved in 2008, was to connect San Francisco and Los Angeles by 2020 at an estimated cost of $33 billion. The current estimate is $135 billion, according to the Department of Transportation’s statement.
“It’s time for this boondoggle to die,” Duffy said. “President Trump and I will always fight to ensure your tax dollars only go to projects that accomplish great, big, beautiful things.”
The California High-Speed Rail Authority was given two opportunities to respond to the federal concerns, but neither response satisfactorily addressed the significant issues raised in the compliance review, the statement said.
Ian Choudri, CEO of the California High-Speed Rail Authority, disputed the federal government’s characterization of the project’s progress and legal standing.
“Canceling these grants without cause isn’t just wrong — it’s illegal,” Choudri said. “These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025.”
