(This story has been updated with the joint statement from U.S. Senators Alex Padilla and Adam Schiff)
California’s high-speed rail project risks losing $4 billion in federal funding after a probe by the U.S. Department of Transportation found the project in default of the terms of two federal grant awards.
In a letter of determination sent to Ian Choudri, Chief Executive Officer of the California High-Speed Rail Authority (CHRSA), the Federal Railroad Administration (FRA) cited missed deadlines, budget shortfalls, and overrepresentation of projected ridership among the key findings from its over 300-page report.
Referring to the project that once aimed to link San Francisco and San Diego via a series of bullet trains as a “Sisyphean endeavor,” the federal probe determined that “even with continued federal support, the project is far short of the funding needed to finish just a fraction of the track.”
“What started as a proposed 800-mile system was first reduced to 500 miles, then became a 171-mile segment, and is now very likely ended as a 119-mile track to nowhere,” stated the Federal Railroad Administration (FRA) Compliance Review Report.
“In essence, CHSRA has conned the taxpayer out of its $4 billion investment, with no viable plan to deliver even that partial segment on time.”
The California High Speed Rail Project has received about $6.9 billion in federal dollars over fifteen years.
Here’s what to know about the California High-Speed Rail projects.
How have California elected officials reacted to the defunding?
In response to the Trump Administration’s action, U.S. Senators Alex Padilla and Adam Schiff (both D-Calif.) released the following joint statement:
“In Donald Trump’s corrupt world, there’s no need for high-speed rail when you can accept a $400 million jet from a foreign government. But for the millions of Californians left to pick up the tab for Trump’s reckless trade wars and rising costs of living, today’s announcement is devastating.
“High-speed rail is the future of transportation — with the potential to bring customers to new businesses, businesses to new employees, and to connect communities hundreds of miles away with affordable and faster transit. The fact is that the California High-Speed Rail Project is already the most audited public works project in the country. Rather than advance the progress being made in the Central Valley, Secretary Duffy has used a review process to appease President Trump and punish Californians who didn’t vote for him. We’ll keep fighting every partisan, self-defeating policy of this Administration as we build infrastructure fit for the 21st century.”
On February 20, 2025, the FRA initiated a compliance review of the CHSRA under two FRA-administered grants totaling over $4 billion to determine whether the rail authority had met its commitments to the FRA under the funding agreements over the period from June 15, 2021, to January 31, 2025
The California High Speed Rail Authority has up to 37 days to respond, after which time the grants could be terminated.
What is the California High-Speed Rail Authority?
The California High-Speed Rail Authority was created in 2008 after California voters approved a bond measure, supported by then-Republican Governor Arnold Schwarzenegger, for a high-speed rail project connecting the Los Angeles area with the San Francisco Bay Area.
Since then, the project has been plagued by legal battles, cost overruns, and political opposition, which have led to cost increases of roughly $100 billion more than the High-Speed Rail Authority’s original $33 billion estimate.
In 2019, California Gov. Gavin Newsom scaled back the project scope when he advocated completing the Central Valley portion connecting Bakersfield to Merced before expanding the project to connect Los Angeles and the Bay Area. According to the Los Angeles Times, roughly $13 billion has been spent on the project to-date.
The California High-Speed Rail line from Merced to Bakersfield will begin carrying passengers between 2030 and 2033.
How much will the California High-Speed Rail cost?
Officials estimate the California High-Speed program could cost about $35 billion to finish the first line from Bakersfield to Merced and roughly $100 billion more to complete the route from Los Angeles to San Francisco — about $100 billion more than what was proposed in 2008.
How much of the high-speed rail project has been completed in California?
As of January 2025, 119 miles of the 171 miles of California High-Speed Rail were under active construction, according to the California High-Speed Rail Authority. Around 22 miles of contiguous guideway were declared complete, preparing that section for track-laying. The remainder of the 119 miles is expected to be ready for track laying by the end of 2026. So far, the project has cost $13 billion, according to reporting by the Fresno Bee.
Reuters contributed to this report.
This article originally appeared on Visalia Times-Delta: Feds blast ‘Sisyphean endeavor’ aim to pull back $4 billion for California High Speed Rail
Reporting by James Ward and Roseann Cattani, Visalia Times-Delta / Visalia Times-Delta
USA TODAY Network via Reuters Connect
