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Trump administration may rescind $4 billion for California High-Speed Rail project
Trump administration may rescind $4 billion for California High-Speed Rail project Trump's administration says there is no viable path forward for California's High-Speed Rail project and gave the state until mid-July to respond
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WASHINGTON, June 4 (Reuters) - The Trump administration said there is no viable path forward for California's High-Speed Rail project and warned it may rescind $4 billion in government funding in the coming weeks.
The U.S. Transportation Department released a 315-page report on June 4 from the Federal Railroad Administration that cited missed deadlines, budget shortfalls and questionable ridership projections. One key issue cited is that California has not identified $7 billion in additional funding needed to build an initial 171-mile segment between Merced and Bakersfield, California.
USDOT gave California until mid-July to respond and then the administration could terminate the grants. Trump said last month the U.S. government would not pay for the project.
More: California sues over $1B in canceled high-speed rail funding, escalating feud with Trump administration
The FRA report said California had "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 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/Anaheim and in the second phase extend north to Sacramento and south to San Diego.
The California High-Speed Rail Authority said it strongly disagrees with the administration's conclusions "which are misguided and do not reflect the substantial progress made to deliver high-speed rail in California."
It noted California Gov. Gavin Newsom's budget proposal 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."
The authority noted in May there is active civil construction along 119 miles in the state's Central Valley.
Voters approved $10 billion for the project in 2008 but the costs have risen sharply. The Transportation Department under former President Joe Biden awarded the project about $4 billion.
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.
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."
