Trump administration halts $4B in funding for California’s high-speed rail fiasco

By 
 updated on July 17, 2025

California’s high-speed rail dream just crashed into reality. Transportation Secretary Sean Duffy pulled the plug on $4 billion in federal funding for the state’s long-troubled rail project, citing a scathing 300-page report exposing its failures, as Fox Business reports. The move signals a hard stop to what critics call a wasteful boondoggle.

The Federal Railroad Administration (FRA) terminated the unspent funds after a compliance review revealed glaring deficiencies in the California High-Speed Rail Authority’s (CHSRA) management. Originally envisioned as an 800-mile network linking Los Angeles to San Francisco, with extensions to Sacramento and San Diego, the project has been scaled back to a 171-mile stub from Merced to Bakersfield. Costs have ballooned from $33 billion to a staggering $130 billion, with completion now projected for the end of the century.

For 16 years, California has invested heavily in this project, with zero miles of high-speed track to show for it. The CHSRA’s inability to meet deadlines, finalize contracts for trainsets, or control contractor cost overruns has fueled outrage. A $7 billion funding gap looms just to finish the Merced-Bakersfield segment, dubbed the Early Operating Segment (EOS).

Decades of delay, waste

The project’s descent into chaos began early, with mismanagement and overoptimistic ridership projections. Secretary Duffy didn’t mince words: “This is California’s fault.” He slammed Gov. Gavin Newsom and state Democrats for enabling what he called a “train to nowhere.”

Duffy’s critique stings because it’s backed by facts. The June 2025 report detailed missed deadlines, skyrocketing costs, and budget shortfalls that have plagued the project since its inception. Taxpayers, Duffy argued, deserve better than funding a fantasy that delivers nothing.

“Federal dollars are not a blank check,” Duffy declared. His decision reflects a broader push to hold failing projects accountable, a stance that resonates with conservatives tired of government waste. California’s rail saga is a textbook case of bureaucratic overreach run amok.

Trump cheers funding halt

President Donald Trump celebrated the decision with characteristic flair. “I have officially freed you from funding California’s disastrously overpriced, ‘HIGH SPEED TRAIN TO NOWHERE,’” he proclaimed. His colorful rhetoric underscores a growing frustration with projects that promise much but deliver little.

Trump’s jab at Newsom as “incompetent” and the project as a “Newscum SCAM” cuts deep. The president’s point is clear: taxpayers shouldn’t foot the bill for a rail line that exists only in renderings. With no operational track after a decade, his indignation is hard to dispute.

Newsom, however, fired back, accusing Trump of “handing China the future” and abandoning California’s Central Valley. “We’re now in the track-laying phase,” Newsom claimed, insisting the project is “miles ahead” of others like Texas’ stalled high-speed rail. His defiance ignores the reality that California’s rail is nowhere near operational.

Newsom’s defense falls flat

Newsom’s boast about track-laying feels like a desperate spin. The project’s scope has been slashed, costs have quadrupled, and completion is decades away. His claim that California is building “America’s only high-speed rail” rings hollow when no trains are running.

The governor’s vow to fight the funding cut as “illegal” is a bold but shaky stance. The FRA’s review, backed by a damning 300-page report, justifies Duffy’s decision to redirect taxpayer dollars. Newsom’s bluster can’t erase the project’s track record of failure.

Rep. Kevin Kiley (R-CA) has long championed ending this fiscal sinkhole. “California High-Speed Rail is the worst public infrastructure disaster in U.S. history,” Kiley stated. His legislation, H.R. 213, aims to block any further federal funding, aligning with Trump’s push for accountability.

Taxpayers demand accountability

Kiley’s call to redirect funds to roads highlights a practical conservative priority: infrastructure that actually serves people. “A project that was supposed to be finished five years ago” now limps toward a distant finish line, Kiley noted. His frustration echoes that of taxpayers weary of subsidizing failure.

The DOT is now reviewing other CHSRA grants, hinting at possible recovery of previously disbursed funds or even legal action. This scrutiny is a wake-up call for state officials who’ve treated federal money as a bottomless well. California’s rail debacle may finally face the consequences it’s long deserved.

Ending this boondoggle is a win for fiscal sanity. Trump and Duffy’s decision to pull funding sends a clear message: government projects must deliver, not just dream big. California’s high-speed rail, a poster child for progressive overpromise, has run out of track and excuses.

About Alex Tanzer

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