Latest news with #costoverrun
CBS News
08-05-2025
- Business
- CBS News
Trump dares Newsom to run for president, calls California high-speed rail project "out of control"
SACRAMENTO — While speaking to reporters in the Oval Office on Tuesday, President Trump slammed California's costly high-speed rail project and challenged Governor Gavin Newsom to run for president. The California high-speed rail project was the brainchild of former California Governor Jerry Brown and has now become Newsom's issue. The project is expected to create nearly 500 miles of tracks connecting the San Francisco Bay Area to Los Angeles. "A little train going from San Francisco to Los Angeles that's being run by Gavin Newscum, the governor of California. Ever heard of Gavin Newscum?" Mr. Trump said. "That train is the worst cost overrun thing I've ever seen. ... It's hundreds of billions for a stupid project that should've never been built." Trump called the project "out of control" and said the federal government is "not going to pay for that thing." The price tag for the project is now estimated at $130 billion, almost $100 billion more than when Brown first proposed it in 2008. Newsom's office fired back at the president's comments. "Hard pass on fiscal tips from the self-described 'king of debt' who ran a steak company, a casino, and a global economy all into the ground," said Daniel Villaseñor, a spokesperson for Newsom's office. Mr. Trump challenged the governor to run for president in 2028 but said something like the high-speed rail project would likely prevent Newsom from winning. "I'd love him to run for president on the other side," Mr. Trump said. "I'd love to see that, but I don't think he's going to be running because that one project alone, well, that and the fires and a lot of other things pretty much put him out of the race." Ethan Elkind with the UC Berkeley Center for Law, Energy and the Environment says California's high-speed rail project is facing money troubles, with or without federal funding. "There's no question that there is no money right now anywhere in sight to finish the system," Elkind said. "The question is, can they at least get a usable section up and running? I think that's pretty dicey right now." As of Wednesday, Newsom's press office said 119 miles are under active construction, while another 171 miles are under active development. The governor's office added that the project has also "generated nearly $22 billion in economic output" and that extensions to Merced and Bakersfield were being designed. "Governor Brown really made this a priority. Governor Newsom has never been a full-throated supporter of the project," Elkind said. Political expert Jack Pitney is not convinced the issue resonates with voters. "I don't think most Californians are lying awake at night thinking about the fate of high-speed rail, given the timeline is already pushed so far into the future," Pitney said. According to an Emerson poll published in February, 54% of Californians still support high-speed rail, even with the costs. Mr. Trump's comments Tuesday came during a meeting in the Oval Office with Canadian Prime Minister Mark Carney. The president also criticized Newsom's request for a federal tax credit to "Make America Film Again," which followed Mr. Trump's announcement that he would impose 100% tariffs on all films produced outside the country.
New York Times
06-05-2025
- Business
- New York Times
Trump Says Federal Government Won't Pay for California High-Speed Rail
President Trump said Tuesday that the federal government will not pay for California's high-speed train, another potential wrinkle in a troubled project that has repeatedly blown past its budget and completion timeline since voters approved funding in 2008. 'That train is the worst cost overrun I've ever seen,' Mr. Trump told reporters in the Oval Office during a joint appearance with Prime Minister Mark Carney of Canada. 'It's, like, totally out of control.' He added: 'This government is not going to pay.' The president's comments came three months after his administration launched a review of how California is spending a $3.1 billion federal grant issued under the Biden administration. The project was originally envisioned as a $33 billion bullet train that would, by 2020, whisk people between San Francisco and Los Angeles in less than three hours. But plans have been stymied by inflation, lawsuits over land acquisitions and lengthy environmental reviews, along with repeated tussles over funding. The cost has more than tripled, the scope of the line has been scaled back and completion is now slated for 2033 for an initial segment that connects two smaller cities in the Central Valley.
