The Trump administration has escalated its clash with California over the state’s embattled high-speed rail project, announcing the withdrawal of another round of federal funding. The move threatens to further derail America’s most ambitious rail infrastructure undertaking, already beset by cost overruns and political disputes.
$175 Million Revoked
On Tuesday, U.S. Secretary of Transportation Sean Duffy said the Department of Transportation was rescinding roughly $175 million that had been awarded to the California High-Speed Rail Authority (CAHSR) under President Joe Biden’s administration.
The money was earmarked for grade separations along the route, intended to keep vehicles and trains apart at crossings, and for construction of a planned station in Madera.
Duffy justified the decision with sharp criticism, calling the project a “boondoggle” that had already squandered nearly $14 billion on preliminary work with little progress to show.
Scathing Remarks from Washington
At a press conference in Los Angeles, Duffy was met with boos as he doubled down on his criticism. “Joe Biden and Pete Buttigieg didn’t care about these failures and dumped hundreds of millions of dollars into California’s fantasy projects,” he said. “The waste ends here. The American people are done investing in California’s failed experiment.”
Duffy compared the estimated $135 billion price tag to what it would cost for every resident of San Francisco and Los Angeles to take hundreds of flights between the cities, suggesting rail advocates were overselling the benefits.
Instead, he said the administration would redirect support to “well-managed projects,” without detailing what those might be. The Trump administration has already shown enthusiasm for Brightline West, a private venture building a rail line between Southern California and Las Vegas, which has received significant federal backing.
California Pushes Back
California officials wasted little time firing back. The High-Speed Rail Authority accused the administration of playing politics rather than evaluating the facts.
“This is a continuation of the Trump Administration’s illegal, politically motivated, and baseless attack on California High-Speed Rail and Central Valley communities,” the Authority said in a statement. “California is delivering the only true high-speed system under construction in North America.”
Officials stressed that track and system purchases for the Central Valley corridor are imminent, with installation planned within the next year.
A Lawsuit Already in Play
The funding cut comes just weeks after California filed a lawsuit against the Trump administration for canceling nearly $4 billion in federal grants. That case claims the administration’s actions amount to political retribution, motivated by President Trump’s personal animus toward the state.
Gov. Gavin Newsom has stood firmly behind the project, emphasizing its role in California’s long-term infrastructure strategy.
Seeking Stability Through State Funding
Ian Choudri, CEO of the California High-Speed Rail Authority, has been pushing lawmakers to create a steady funding stream through California’s cap-and-trade revenues. The proposal would allocate as much as $1 billion annually to the project, allowing the Authority to seek financing, accelerate construction, and unlock new revenue streams.
Newsom has endorsed the plan, urging legislators to provide consistent support rather than relying on volatile, one-off grants.
Construction Continues in the Central Valley
Despite the political headwinds, construction is advancing along a 119-mile stretch in the Central Valley. That segment, which forms the backbone of the initial operating route, is expected to be completed in the early 2030s.
Backers argue that once trains are running in the Central Valley, momentum for expansion to Los Angeles and San Francisco will be easier to build. Critics, however, remain skeptical that the vision of a statewide high-speed network will ever materialize.
For now, California’s bullet train remains a symbol of both promise and controversy, an ambitious bet on the future of transportation caught in the crossfire of national politics.
