Trump administration moves to pull California high-speed rail funding after DOT review

CBS News

2 days ago

The Trump administration is once again seeking to end federal funding for California's high-speed rail project, following a lengthy review of the state's progress that found "no viable path" to completion.
In a 315-page compliance review released Wednesday, the U.S. Department of Transportation's Federal Railroad Administration detailed the cost overruns and missed deadlines that have plagued the state's plans to build a high-speed rail link from the San Francisco Bay Area to Los Angeles, which was approved by voters in 2008.
FRA Acting Administrator Drew Feeley said in a letter to California High-Speed Rail Authority CEO Ian Choudri that the authority was in default of its agreement with the federal government to obtain $4 billion in funding for projects that could deliver passenger rail by 2033.
Feeley said the FRA would not continue to commit taxpayer dollars to a "Sisyphean endeavor" that currently is a fraction of what was promised in 2008.
Rendering of a California high-speed rail train
California High-Speed Rail Authority
The initial proposal was for the project to be completed by 2020 for $33 billion. However, costs for just the first segment of the project - a 171-mile section from Merced to Bakersfield in the Central Valley - have ballooned to $35 billion, with a goal to begin service by the end of 2030, according to the CHSRA.
"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," said Feeley. "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."
It has been estimated that another $100 billion will be needed to complete the route from Los Angeles to San Francisco. In February, U.S. Secretary of Transportation Sean Duffy ordered the review of the project, long targeted by Republican lawmakers and President Donald Trump, to determine whether to commit $4 billion promised by the Biden administration.
Mr. Trump also targeted the project in his first term, halting about $1 billion in federal funding that was later restored and increased by the Biden administration.
Duffy called the project a "boondoggle" in a statement Wednesday, saying the administration would pull the $4 billion it authorized for the project unless the CHSRA can prove within 37 days that the project is still viable.
"CHSRA is on notice — If they can't deliver on their end of the deal, it could soon be time for these funds to flow to other projects that can achieve President Trump's vision of building great, big, beautiful things again," said Duffy.
In a statement on Wednesday, a CHSRA spokesperson said it strongly disagreed with the FRA's conclusions, calling them misguided and not reflective of the project's progress. The statement said the agency would correct the record in a formal response to the FRA's notice.
"While continued federal partnership is important to the project, the majority of our funding has been provided by the state," said the spokesperson. "To that end, the Governor's budget proposal, which is currently before the Legislature, extends 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 January, the CHSRA released an economic impact report saying the $13 billion spent so far on the high-speed rail project created nearly 15,000 jobs, $8.3 billion in labor income, and $21.8 billion in total economic output. Overall, the entire build-out of the project would create 1,034,000 job-years of employment and total economic activity of $221.8 billion, the CHSRA said.
In a statement Wednesday, Speaker Emerita Nancy Pelosi (D-San Francisco) called Duffy's remarks about the high-speed rail project "a rejection of the future."
"It is unfortunate that the Secretary has misrepresented the facts and lacks understanding of how California High-Speed Rail promotes commerce, improves quality of life for Californians and creates good-paying jobs - while also lowering the cost of housing by shortening the distance to commute from home to work," said Pelosi. "With his statement, it is clear the Secretary is either trying to mislead or has been misled on this issue."
Rep. Dave Cortese (D-San Jose) called the Trump administration's move to cut CHSRA funding "partisan theatrics" that seek to derail clean transportation.
"It's shameful that some lawmakers would support taking critical infrastructure dollars away from their own communities. California already sends $81 billion more to Washington than it gets back. Now, they want to give away another $4 billion," Cortese said in a statement. This is a project that will unlock major employment access across the Tri-Valley and beyond. The Central Valley is the top agricultural producer in the country - it deserves 21st-century infrastructure, and should not be neglected.
But state Sen. Shannon Grove (R-Bakersfield) commended Duffy for issuing the notice to end CHSRA's federal funding.
"For years, I've called for ending California's high-speed rail to nowhere, and the DOT's 310-page report delivered by Secretary Duffy slams its delays, mismanagement, and billions in wasted federal funds," said Grove in a prepared statement. "Let's redirect these taxpayer funds to real infrastructure, not this disaster that won't be completed before our grandkids retire."
An Emerson poll published in February showed 54% of Californians still support high-speed rail, despite the cost overruns. California's Senate Transportation Committee has said federal funding is only a small fraction of the project's budget.