Duffy threatens to pull California high-speed rail funding

Duffy threatens to pull California high-speed rail funding

The Department of Transportation, under the Trump administration, has threatened to revoke $4 billion in federal funding for the California High-Speed Rail (CHSRA) project. This decision follows a 315-page compliance review report, which highlighted significant issues including missed deadlines, budget shortfalls, and overrepresented projected ridership [1].

The report, released by Drew Feeley, acting administrator for the Federal Railway Authority, found that the CHSRA has failed to meet the terms of its federal grant awards. The review cited "patterns of unattainable proposals and unrealistic assumptions" in various aspects of the project, including funding availability, electrification costs, and ridership projections [1]. The report also criticized the "countless change orders" that have cost around $1.6 billion over the past two years [1].

The Department of Transportation Secretary, Sean Duffy, stated that the CHSRA has no viable path to complete the project on time or on budget. He emphasized that the federal government is committed to being good stewards of taxpayer dollars and that the CHSRA's mismanagement may lead to funds being redirected to other projects [1].

The California High-Speed Rail Authority has disputed the findings, asserting that the report is "misguided" and does not reflect the substantial progress made on the project. The authority noted that Governor Gavin Newsom's budget proposal extends at least $1 billion per year in funding for the next 20 years, providing the necessary resources to complete the project's initial operating segment [1].

The CHSRA has faced numerous challenges since its inception, with the project's cost ballooning from an initial $33 billion estimate to a projected $105 billion [1]. The project has also faced delays, with only 22 miles of the 400-mile route ready for tracking as of 2022 [1]. The Trump administration has given the CHSRA until mid-July to respond to the compliance review, after which the federal funding could be terminated [2].

The California Legislative Analyst’s Office has projected a $7 billion funding gap between projected costs and available funding [1]. Despite these challenges, the CHSRA remains committed to completing the nation's first true high-speed rail system, connecting major population centers in the state [1].

References:
[1] https://spectrumlocalnews.com/nys/central-ny/politics/2025/06/04/california-high-speed-rail-project-federal-funding
[2] https://www.usatoday.com/story/news/politics/2025/06/04/trump-california-high-speed-rail-project/84035056007/