Trump rescinds $4 billion in US funding for California High-Speed Rail project
WASHINGTON (Reuters) -U.S. President Donald Trump said on Wednesday the Transportation Department is rescinding $4 billion in U.S. government funding for California's High-Speed Rail project.
"This project was severely overpriced, overrregulated, and never delivered," Trump said in a social media post. "The railroad we were promised still does not exist and never will."
In a separate statement from Trump's, the department said there was no viable path forward for the High-Speed Rail project and it was considering potentially clawing back additional funding related to the project, calling it "grossly over budget."
California officials called the action illegal. This is the latest in a series of clashes between Trump and California, including over transgender athletes, electric vehicle rules, the use of National Guard troops in Los Angeles and even over egg prices.
"California is putting all options on the table to fight this illegal action," California Governor Gavin Newsom said in a statement.
The Federal Railroad Administration issued a 315-page report last month citing missed deadlines, budget shortfalls and questionable ridership projections.
Key issues cited include that California had not identified $7 billion in additional funding needed to build an initial 171-mile segment between Merced and Bakersfield and the project has not begun laying track.
The California High-Speed Rail System is a planned two-phase 800-mile (1,287 km) system with speeds of up to 220 miles per hour that aims to connect San Francisco to Los Angeles and Anaheim, and in the second phase, extend north to Sacramento and south to San Diego.
The entire San Francisco-to-Los Angeles project was initially supposed to be completed by 2020 for $33 billion, but has now jumped from $89 billion to $128 billion.
"Canceling these grants without cause isn't just wrong — it's illegal," said California High-Speed Rail Authority CEO Ian Choudri. "These are legally binding agreements, and the Authority has met every obligation ... This is no time for Washington to walk away on America's transportation future.'
The authority added the project "is fast approaching the track-laying phase, with 171 miles under active construction and design, 15,500 jobs created, and more than 50 major structures completed."
Newsom currently has a budget proposal before the legislature to extend 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."
In a post on social media platform X, Transportation Secretary Sean Duffy said "Newsom and California's high-speed rail boondoggle are the definition of government incompetence and possibly corruption."
Newsom responded to the post, "Won't be taking advice from the guy who can't keep planes in the sky."
Voters approved $10 billion for the project in 2008. The Transportation Department under former President Joe Biden awarded the project about $4 billion.
In 2021, Biden restored a $929 million grant for California's high-speed rail that Trump had revoked in 2019 after the Republican president called the project a "disaster" and the state successfully sued.
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