Trump rescinds US$4 billion in US funding for California 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 US$7 billion in additional funding needed to build an initial 171-mile (275km) 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 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 US$33 billion, but has now jumped from US$89 billion to US$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 US$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 US$10 billion for the project in 2008. The Transportation Department under former President Joe Biden awarded the project about US$4 billion.
In 2021, Biden restored a US$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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
3 hours ago
- CNA
Trump insists Iran nuclear sites destroyed amid reports some survived
WASHINGTON: US President Donald Trump on Saturday (Jul 19) insisted that the US bombing of Iranian nuclear facilities "completely destroyed" the sites after a report said that some had largely survived. On his Truth Social platform, Trump reiterated his frequent claim that "all three nuclear sites in Iran were completely destroyed and/or OBLITERATED." He said it would "take years to bring them back into service and, if Iran wanted to do so, they would be much better off starting anew, in three different locations." US HIT IRAN'S NUCLEAR SITES IN JUNE US bomb and missile attacks struck Iran's controversial nuclear program on June 22, hitting the uranium enrichment facility at Fordo, south of Tehran, as well as nuclear sites in Isfahan and Natanz. The bombings, carried out at the same time as an Israeli campaign against Iranian nuclear and military infrastructure, were billed by Washington as a knockout blow to a years-long covert effort to build nuclear weapons. Iran insists it has not tried to weaponise its civilian nuclear power program. LEAKED INTEL SAYS ONLY 1 OF 3 SITES DESTROYED Despite Trump's claims of total success, several US media outlets have reported leaked intelligence suggesting a hazier picture. The latest to cast doubt was an NBC News report Friday, quoting a military damage assessment that only one of the three sites was mostly destroyed. Two other sites were deemed to be repairable and potentially able to resume uranium enrichment activities within "the next several months," NBC reported, citing five current and former US officials aware of the assessment. NBC also reported that the Pentagon had prepared an option to inflict far greater damage on Iran's facilities through a bombing campaign that would have lasted several weeks -- not the one-night operation chosen by Trump.
Straits Times
10 hours ago
- Straits Times
Trump duties to decimate China profits, says Bloomberg Economics
Find out what's new on ST website and app. Chinese textiles are among the industries most at risk from US President Donald Trump's sweeping tariffs. HONG KONG – Most of China's industries cannot survive US President Donald Trump's tariffs at current levels, according to a new analysis by Bloomberg Economics. Tariffs now set at roughly 40 per cent compare with average industrial profit margins of about 14.8 per cent in 2024. That gap may prompt more intense price cuts, weakening profits, and – in the worst case – layoffs and potentially a wave of bankruptcies and closures, according to analysts Chang Shu, David Qu and Maeva Cousin. Among industries most at risk are textiles, IT and communication equipment and furniture manufacturing. Of 33 industrial sectors that analysts considered, only five have margins that are wider than tariff rates. They include pharmaceuticals, tobacco and oil and gas extraction. 'Some companies with a heavy dependence on the US market may not survive,' the analysts wrote in a research note. 'Others will scramble to adapt, accepting lower margins, laying off workers, cutting wages, and potentially flooding the domestic and other foreign markets with cut-price goods.' Top stories Swipe. Select. Stay informed. Singapore Mindef, SAF units among those dealing with attack on S'pore's critical information infrastructure Asia How China's growing cyber-hacking capabilities have raised alarm around the world Asia Autogate glitch at Malaysia's major checkpoints causes chaos for S'porean and foreign travellers Singapore A deadly cocktail: Easy access, lax attitudes driving Kpod scourge in S'pore Singapore 'I thought it was an April Fool's joke': Teen addicted to Kpods on news that friend died Singapore Who decides when you can't? A guide on planning for end-of-life care Singapore Why hiring more teachers makes sense, even with falling student numbers Singapore Bukit Panjang LRT disruption: Train service resumes after power fault affects 13-station line The findings underscore the economic risks that tariffs pose to the world's second-largest economy at a time when domestic consumption remains sluggish. Trade officials continue to negotiate with their US counterparts on a bilateral deal to avoid another escalation in levies. Earlier in 2025, tariffs on China soared to 145 per cent . Data this week underscored the Asian giant's reliance on industrial production and exports to fuel growth. While gross domestic product advanced 5.2 per cent in the second quarter, outpacing analysts' estimates, it was helped by shipment frontloading and manufacturers cutting prices, both of which are tough to sustain. Nearly half of China's industrial sectors rely on overseas markets to absorb 10 per cent or more of their output, the Bloomberg analysis found, and the US remains China's largest single-country trading partner. Elevated tariffs could, in the long run, prompt companies in the US to source goods from other countries, the analysts wrote. To be sure, there are factors that could cushion the blow to China's industry, including exports to other countries in which goods do not face the same trade barriers. Some products may also be absorbed by domestic demand. Some sectors have also cornered the global market, making it difficult or impossible for US firms to find needed items elsewhere. China's government could also step in with additional fiscal support. BLOOMBERG
Straits Times
11 hours ago
- Straits Times
Congo, M23 rebels pledge in Qatar to reach peace deal next month
FILE PHOTO: Members of the M23 rebel group ride on a pickup truck as they leave their position for patrols amid conflict between them and the Armed Forces of the Democratic Republic of the Congo (FARDC), in Goma, eastern Democratic Republic of the Congo, January 29, 2025. REUTERS/Stringer/File Photo DOHA - Democratic Republic of Congo and the M23 rebel group pledged to sign a peace agreement by August 18, at a ceremony in Doha on Saturday, a sign of progress even as outstanding details need to be negotiated. Representatives of both sides signed a declaration of principles laying out the new timeline, a copy of which was obtained by Reuters, at the ceremony that followed months of Qatari mediation after talks began in April. The United States, which has hosted separate talks between the governments of Congo and Rwanda, has exerted pressure to finalise a durable peace deal in Congo. President Donald Trump has made clear he hopes that would spur Western investment into a country rich in tantalum, gold, cobalt, copper, lithium and other minerals. Last month, the Rwandan and Congolese foreign ministers signed a peace deal and met with U.S. President Donald Trump at the White House. Trump at the time invited Congolese President Felix Tshisekedi and Rwandan President Paul Kagame to Washington to sign a package of agreements potentially including economic deals. The rebel group M23, in the latest of a series of uprisings, has controlled Goma, eastern Congo's largest city, since late January and has also made gains across North Kivu and South Kivu provinces. Rwanda has long denied allegations that it has helped M23, which has seized more territory in Congo than it has ever previously held. The fighting has killed thousands and displaced hundreds of thousands more this year, while escalating the risk of a full-scale regional war. Several of Congo's neighbours had troops deployed in eastern Congo when the advance began. Top stories Swipe. Select. Stay informed. Singapore Mindef, SAF units among those dealing with attack on S'pore's critical information infrastructure Asia How China's growing cyber-hacking capabilities have raised alarm around the world Asia Autogate glitch at Malaysia's major checkpoints causes chaos for S'porean and foreign travellers Singapore A deadly cocktail: Easy access, lax attitudes driving Kpod scourge in S'pore Singapore 'I thought it was an April Fool's joke': Teen addicted to Kpods on news that friend died Singapore Who decides when you can't? A guide on planning for end-of-life care Singapore Why hiring more teachers makes sense, even with falling student numbers Singapore Bukit Panjang LRT disruption: Train service resumes after power fault affects 13-station line Qatar's Minister of State for Foreign Affairs Mohammed bin Abdulaziz Al-Khulaifi said at a news conference Saturday's declaration "lays the groundwork for a new phase of partnership among the various components of society in the Democratic Republic of the Congo - including armed movements that have chosen to prioritise the greater national interest." It was brought about by talks that followed a surprise meeting between Congolese President Felix Tshisekedi and his Rwandan counterpart Paul Kagame, brokered by Qatar in March, during which they called for an "immediate and unconditional" ceasefire. Congo had previously rejected the idea of holding talks with M23, branding it a terrorist group. While denying it has supported M23, Rwanda has said its forces have acted in self defence against Congo's army and ethnic Hutu militiamen linked to the 1994 Rwandan genocide. POINTS OF CONTENTION Sources in both delegations have expressed frustration with the pace of negotiations in Doha and the lack of progress on confidence-building measures including the release of M23 members held by Congo and the re-opening of banks in rebel-held territory. The declaration of principles does not resolve those issues, instead committing the parties to "creating the necessary conditions" to eventually do so. It also does not address bigger questions concerning the possible Rwandan and M23 withdrawals from eastern Congo. It says Congo and M23 agree state authority should be restored "on all national territories" as part of an eventual peace agreement but does not give details. Congo government spokesperson Patrick Muyaya nevertheless said on X on Saturday that the declaration "takes into account the red lines we have always defended, including the non-negotiable withdrawal" of M23. Negotiations for a peace agreement are to start no later than August 8, according to the declaration, which would give the parties less than two weeks to finalise a deal if they stick to their new August 18 deadline. "We are confident and we are hopeful," Massad Boulos, Trump's senior adviser for Africa, told Reuters after Saturday's ceremony in Doha, adding that Tshiskedi and Kagame "have both committed to resolving this." REUTERS
