Latest news with #CaliforniaHigh-SpeedRailAuthority
Newsweek
10 hours ago
- Business
- Newsweek
Threatened California High-Speed Rail Gets New Boost
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. California Governor Gavin Newsom has backed his state's high-speed rail network with new legislation that could provide a new funding strategy. It comes after President Donald Trump slashed $4 billion of federal funding for the project. Newsweek contacted the California High-Speed Rail Authority for more information via email. Why It Matters California's high-speed rail is in an awkward position. Years of delays and an inflated budget have damaged public and political faith in the project, but the past few years have seen progress—with construction happening throughout the state and tracklaying set to start later this year. To call off the project now, as many of its detractors in the White House desire, would waste years of advancement. That has not stopped Trump, a long-standing critic of the project, from regularly threatening to take away the federal funding that has been vital to the project's progress so far—a threat he and Transportation Secretary Sean Duffy carried out in July. What To Know On Wednesday, California Governor Gavin Newsom signed Assembly Bill 377, compelling the California High-Speed Rail Authority to submit a comprehensive funding strategy for the Merced-to-Bakersfield Central Valley segment in its upcoming 2026 business plan. The new law directs the authority to update cost estimates, conduct risk assessments, and outline options for service initiation in this core section. The high-speed rail project began as an ambitious $33 billion plan, approved by California voters in 2008 to connect San Francisco and Los Angeles in under three hours by 2020. Today, the project's cost estimates have surged to between $89 and $128 billion, and the initial phase is focused solely on a 171-mile stretch in the Central Valley, targeted for completion by 2033. An Amtrak conductor walks alongside a train on a platform at the Amtrak Diridon San Jose Station, San Jose, California, USA, October 25, 2024. An Amtrak conductor walks alongside a train on a platform at the Amtrak Diridon San Jose Station, San Jose, California, USA, October 25, 2024. Getty Images The legislative effort comes as the Trump administration officially revoked a $4 billion federal grant in July 2025, branding the project a "boondoggle" and arguing it failed to deliver on promises. This action leaves California with the challenge of filling the resulting financial gap. Governor Newsom has proposed extending the state's cap-and-trade program, which generates roughly $1 billion annually for the rail, by 15 years to 2045, ensuring a continued funding stream for the core segment. State leaders are also debating simultaneous expansion north to Gilroy and south to Palmdale, which would better connect commuters to major metro areas via existing transit, provided lawmakers approve increased annual funding. The California High-Speed Rail Authority has indicated that higher ridership from these links could incentivize private investment needed to finish the full system. What People Are Saying Governor Gavin Newsom defended the project and criticized the federal funding withdrawal, saying: "Trump wants to hand China the future and abandon the Central Valley. We won't let him. With projects like the Texas high-speed rail failing to take off, we are miles ahead of others. We're now in the tracklaying phase and building America's only high-speed rail. California is putting all options on the table to fight this illegal action." Ian Choudri, CEO of the California High-Speed Rail Authority, said: "Canceling these grants without cause isn't just wrong—it's illegal. These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025. "America's only high-speed rail project underway is fast approaching the tracklaying phase, with 171 miles under active construction and design, 15,500 jobs created, and more than 50 major structures completed. This is no time for Washington to walk away on America's transportation future." What Happens Next The California High-Speed Rail Authority is expected to submit its updated business plan and comprehensive funding strategy to lawmakers in 2026. In the immediate term, state officials plan to pursue litigation to restore the lost federal grant and court private investment to close funding gaps.
USA Today
18-07-2025
- Business
- USA Today
Trump, Newsom tangle on newest battlefront: California's high-speed train
California's long-delayed high-speed rail project has become the latest victim in the ongoing battle between President Donald Trump and Gov. Gavin Newsom, as White House officials again seek to cancel billions in federal funding. The state-backed high speed rail project aims to link San Francisco and Los Angeles with a 200 mph train that will eventually run 800 miles around California. But the project's price tag has ballooned over the years from $33 billion to $135 billion, according to federal Transportation Secretary Sean Duffy. In a July 16 social media post, Trump called the project a "boondoggle" that should have never been started in the first place. The pending federal contribution is $4 billion. "The railroad we were promised still does not exist, and never will," Trump said. "This project was severely overpriced, overregulated, and never delivered." Duffy added his own social media critique of the price: "We could give every single LA & SF resident almost 200 free flights for that much. That's why today we're pulling the plug on federal funding for this train to nowhere." Trump has long been hostile to the project, and in his first presidency he similarly halted its federal funding. California forged ahead regardless, and President Joe Biden restored the money when he took office. Biden had long been a champion of better passenger rail service. California has been planning the project for decades, and in 2008 voters approved initial funding for the service. New rail projects in the United States typically take decades to develop as managers first plot a route and acquire the necessary rights-of-way to lay track, then design and build other necessary infrastructure, from bridges to stations. About 119 miles of the rail project are being built now, primarily through the less-populated Central Valley region. Rail boosters hope to see the California line eventually link up with the under-construction Brightline West high-speed train from Los Angeles suburbs to Las Vegas. The project has already spent more than $13 billion in planning, design and initial construction, according to its 2025 update, and is considering public-private partnerships to help close any funding gaps due to additional cost increases or federal budget cuts. Newsom, a Democrat who has increasingly tangled with Trump over issues from immigration to wildfire, said the state would fight the funding reversal. In response to Duffy's post, Newsom referenced the recent spate of commercial air travel crashes: "Won't be taking advice from the guy who can't keep planes in the sky." California High-Speed Rail Authority officials argue the project has followed all federal funding rules, including a 2024 review by the Biden-era Federal Railroad Authority. "There have been no meaningful changes in the past eight months that justify FRA's dramatic about-face," said CEO Ian Choudri in a June 12 letter to federal officials. "Instead, the FRA has looked at essentially the same facts it considered in the fall of 2024 and simply reached a different conclusion."
Newsweek
18-07-2025
- Business
- Newsweek
California Strikes Back at Trump Over High-Speed Rail Funding
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. California has escalated its fight against President Donald Trump's administration after the federal government rescinded $4 billion in funding earmarked for the state's ambitious high-speed rail project. On Thursday, the California High-Speed Rail Authority filed a lawsuit in the U.S. District Court in Los Angeles, seeking to overturn the decision that state officials alleged was an "arbitrary and capricious abuse of authority." Newsweek has contacted the rail authority and Governor Gavin Newsom's office for more information via email. Why It Matters The lawsuit could determine the fate of the biggest high-speed rail project in the U.S. Losing federal funds threatens tens of thousands of jobs and could delay or derail the completion of the Central Valley segment. The outcome could also have a knock-on effect on transit infrastructure, particularly as the project's cost estimate has soared to $128 billion. What To Know The California High-Speed Rail Authority, joined by state Attorney General Rob Bonta, filed the lawsuit after the Federal Railroad Administration pulled $4 billion in grants originally designated for construction in the Central Valley. The complaint said the Trump administration's decision was "arbitrary and capricious, an abuse of discretion, and contrary to law." It added that the action could have severe economic implications for the state. The suit names U.S. Department of Transportation Secretary Sean Duffy and acting Administrator of the Federal Railroad Administration Drew Feeley as defendants. President Donald Trump greeting California Governor Gavin Newsom at Beale Air Force Base in California on November 17, 2018. President Donald Trump greeting California Governor Gavin Newsom at Beale Air Force Base in California on November 17, 2018. Getty Images Newsom said in a statement shortly before the suit was filed, "California is putting all options on the table to fight this illegal action." Approved by state voters in 2008, California's high-speed rail was originally intended to link San Francisco and Los Angeles by 2020 at a projected cost of $33 billion. On Wednesday, Trump, who has been threatening to withdraw federal funding since the beginning of his second term, made the decision to withdraw $4 billion, branding the project a "boondoggle" that had been mismanaged by Democratic leaders in California. What People Are Saying California Governor Gavin Newsom said in a statement to Newsweek on Wednesday: "Trump wants to hand China the future and abandon the Central Valley. We won't let him. With projects like the Texas high-speed rail failing to take off, we are miles ahead of others. We're now in the track-laying phase and building America's only high-speed rail. California is putting all options on the table to fight this illegal action." California High-Speed Rail Authority CEO Ian Choudri told Newsweek on Wednesday: "Canceling these grants without cause isn't just wrong—it's illegal. These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025. "America's only high-speed rail project underway 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. This is no time for Washington to walk away on America's transportation future." What Happens Next California's lawsuit is set to proceed in the U.S. District Court, with initial hearings anticipated in the coming months. The California High-Speed Rail Authority plans to submit an updated funding strategy to state lawmakers and is seeking private investment and legislative backing for increased cap-and-trade support.
Yahoo
17-07-2025
- Politics
- Yahoo
California high-speed rail has federal funding cancelled
The Trump administration and its Transportation Secretary Sean Duffy have scrapped billions of dollars in federal funding for the California High-Speed Rail Authority (CHSRA). While this has been presented as a financial decision, Trump's words to describe the Governor of California, a political opponent, suggested it is part of his ongoing campaign against the largest and richest state in the US. The cut is worth at least $4bn, but while this is only a small part of the California High-Speed Rail project's overall budget, it could make the continuation of the project impossible. The cancelled funding allocations are known as the FSP Agreement and the FY10 Agreement. The project was on track to cost as much as $128 billion, significantly higher than its original estimate of $33 billion. A key aim of the project was 'creating the greenest infrastructure project in the nation, both in its operations and its construction.' The Department of Transportation described the project as 'California's High Speed Rail Boondoggle'. Boondoggle is a US term used to describe wasteful or fraudulent spending on capital projects. Its statement also echoes Trump's previous assertions that a new rail route is unneeded because roads and aviation routes exist. 'The $135 billion projected total cost of the project could buy every San Francisco and LA resident nearly 200 roundtrip flights between the cities,' it said. Transportation Secretary Sean Duffy put it bluntly in his own statement: 'It's time for this boondoggle to die.' He then extended the political attack on the California state administration, and Gavin Newsom, who has been vocal in his opposition to the actions of the Trump federal government. 'This is California's fault. Governor Newsom and the complicit Democrats have enabled this waste for years. Federal dollars are not a blank check – they come with a promise to deliver results. After over a decade of failures, CHSRA's mismanagement and incompetence has proven it cannot build its train to nowhere on time or on budget,' Duffy asserted. The cut followed a review of the federal funding allocated to the CHSRA, which found the Authority 'cannot meet its obligations under the grant agreement'. Duffy said further reviews into further funding were now underway. The decision, which was foreshadowed by Trump and Duffy's words over the past week, was met with anger by Californian officials. CHSRA CEO Ian Choudri said: 'Cancelling these grants without cause isn't just wrong — it's illegal.' 'These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025. America's only high-speed rail project underway 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. This is no time for Washington to walk away on America's transportation future,' Choudri added. Governor Newsom said the funding reversal would benefit China (which has already built more than 20,000 miles of high-speed railways) instead of the US, and the California State government would challenge the decision in court. 'Trump wants to hand China the future and abandon the Central Valley. We won't let him. With projects like the Texas high-speed rail failing to take off, we are miles ahead of others. We're now in the track-laying phase and building America's only high-speed rail. California is putting all options on the table to fight this illegal action,' Newsom said. Aside from the party politics, the DoT and Federal Railroad Administration under Secretary Duffy cited several reasons for stopping the funding. These centre around the finding that CHSRA will 'not be able to deliver the operation of a Merced-to-Bakersfield corridor by the end of 2033'. The full decision letter can be found here. The reasons given include: 'CHSRA has already missed its deadline for finalizing its rolling stock procurement. CHSRA has at least a $7 billion funding gap to complete the EOS, with no credible plan to secure additional funds. CHSRA does not have a viable path to complete the EOS by 2033 per its commitment in the FY10 Agreement and the FSP Agreement. CHSRA relies on volatile non-federal funding sources, which present significant project risk. CHSRA lacks time and money to electrify the EOS by 2033. CHSRA's budget contingency is inadequate to cover anticipated contractor delay claims.' A full response to these points was delivered by the CHSRA in a letter, which can be read here. While not specifically mentioned in the decision document, the lack of laid track has become a key talking point in Duffy and Trump's public communication on the project. Though it is true that no actual track has yet been laid for the high-speed line, Choudri said this is due to the significant infrastructure like bridges, viaducts, and underpasses that must be built first, many of which have been completed. 'I must also take this opportunity to dispute, in the strongest possible terms, the misleading claim that the Authority has made 'minimal progress to advance construction,'' wrote Choudri on 12 July. 'The Authority's work has already reshaped the Central Valley. We have built many of the viaducts, overpasses, and underpasses on which the first 119 miles of high-speed rail track will run.' "California high-speed rail has federal funding cancelled" was originally created and published by Railway Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. 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San Francisco Chronicle
17-07-2025
- Business
- San Francisco Chronicle
Newsom slams Trump's $4B cut to California bullet train as ‘illegal'
Gov. Gavin Newsom on Wednesday condemned the Trump administration's decision to rescind $4 billion in federal funding for California's high-speed rail project, calling the move 'illegal' and vowing to fight back. 'Trump wants to hand China the future and abandon the Central Valley. We won't let him,' Newsom said in a statement. The governor's response came just hours after Transportation Secretary Sean P. Duffy announced the funding cut, following what he described as a comprehensive compliance review by the Federal Railroad Administration that concluded that the California High-Speed Rail Authority 'cannot meet its obligations under the grant agreement.' 'It's time for this boondoggle to die,' Duffy said in a statement. 'President Trump and I will always fight to ensure your tax dollars only go to projects that accomplish great, big, beautiful things.' The FRA's review cited numerous issues, including a $7 billion funding gap, missed procurement deadlines and inflated ridership estimates. Despite 16 years of planning and $15 billion spent, no high-speed rail track has been laid, Duffy said. 'The Railroad we were promised still does not exist, and never will,' Trump wrote on Truth Social. 'This project was Severely Overpriced, Overregulated, and NEVER DELIVERED.' Newsom and the CHSRA disputed the administration's findings, arguing that the project is actively progressing, with more than 50 major structures completed and track-laying set to begin. 'Canceling these grants without cause isn't just wrong — it's illegal,' CEO Ian Choudri said in a statement. 'These are legally binding agreements, and the Authority has met every obligation.' The revocation comes amid broader Republican criticism of the rail project, which was approved by California voters in 2008 and originally promised high-speed service between San Francisco and Los Angeles. The project's cost has ballooned to more than $135 billion, with current efforts focused on a 119-mile segment from Bakersfield to Merced, projected to begin service by 2033.
