Trump plans significant reduction in federal funding for California.

Trump plans significant reduction in federal funding for California.

The Trump administration has indicated a significant reduction in federal funding for California’s high-speed rail project, following a comprehensive review that found no viable path forward to complete the project. The Federal Railroad Administration (FRA) released a 310-page compliance review on June 4, 2025, which cited budget shortfalls, missed deadlines, and misleading projected ridership as key reasons for the potential withdrawal of $4 billion in federal funding within 37 days [1].

The review, conducted by FRA acting administrator Drew Feeley, concluded that the California High-Speed Rail Authority (CHSRA) relied on the “false hope of an unending spigot of Federal taxpayer dollars” and has “conned the taxpayer out of its $4 billion investment, with no viable plan to deliver even that partial segment on time” [1]. The review specifically targeted federal grants for construction in the Central Valley, where a 171-mile stretch has been under construction.

CHSRA has disagreed with the findings, labeling them as “misguided” and an inaccurate reflection of the project’s progress. The authority remains committed to completing the nation’s first true high-speed rail system, connecting major population centers in the state [1]. CEO Ian Choudri has emphasized the importance of public-private partnerships in the project’s future, an idea echoed by a state-appointed advisory committee [1].

The project, initially proposed with a 2020 completion date, has faced massive challenges since its inception. The budget has ballooned to over $100 billion, with tens of billions of dollars still unaccounted for. The train was initially proposed with a 2020 completion date, but construction has been limited to a 171-mile stretch in the Central Valley. Although the entire line between San Francisco and Los Angeles was environmentally cleared for construction last year, no portion has been completed [1].

The Trump administration’s review comes at a time when the project’s future is tied to the privately owned Brightline West high-speed rail project, which would connect from Las Vegas to Southern California. Governor Gavin Newsom has stressed the need to move forward with the project, despite past decisions that cannot be undone [1].

State officials have defended the project and remain committed to construction, though it’s unclear what funding would replace the federal support if it’s withdrawn. The state’s budget proposal extends at least $1 billion per year for 20 years to complete an initial segment of the line [1].

The project has created more than 15,000 jobs in the Central Valley and has been considered integral to the revitalization of some business districts there. However, critics argue that the project is a failure and that the funds should be redirected to other transit projects [1].

The Trump administration’s stance on the project has been met with protest from transit advocates and support from Republican lawmakers, who argue that the project is a waste of taxpayer dollars. A recent poll found that 67% of registered voters supported the project [1].

References:
[1] https://www.latimes.com/california/story/2025-06-04/trump-administration-sees-no-viable-path-forward-to-finish-high-speed-rail-project-moves-to-pull-federal-funding
[2] https://apnews.com/article/california-high-speed-rail-fra-newsom-trump-4d51cf236cb0b65ddbec7b49d4155a72