The Trump administration has put California’s high-speed rail project in jeopardy, stating there is "no viable path" to complete it. This announcement comes after a four-month investigation that threatens to pull $4 billion in federal funding. The Department of Transportation’s review, spanning 310 pages, highlighted budget issues, missed deadlines, and overly optimistic ridership projections for the rail line connecting San Francisco to Los Angeles.
The review specifically targets federal funds allocated for construction in the Central Valley, indicating that these funds could be withdrawn within the next 37 days if the California High-Speed Rail Authority does not respond adequately. Drew Feeley, the acting administrator of the Federal Railroad Administration, accused the rail authority of misleading taxpayers and failing to present a realistic plan to finish even the partial segment of the project on time.
In response, the California High-Speed Rail Authority disagreed with the findings, calling them misguided. A spokesperson for the authority stated they would address the issues in a formal response and reaffirmed their commitment to completing the rail system, which they believe is crucial for connecting major population centers in the state.
So far, about $14 billion has been spent on the high-speed rail project, with the majority of funding—82%—coming from state sources and 18% from federal grants. Despite the federal government not seeking repayment of previous funds, concerns remain about the project’s future.
The project has faced significant challenges since its inception, with costs ballooning to an estimated $100 billion, far exceeding the original $33 billion estimate from 2008. Originally slated for completion in 2020, construction has been limited to a 171-mile stretch in the Central Valley. Routing decisions have also drawn criticism, particularly the choice to go through the east side of the San Joaquin Valley instead of a more direct route along Interstate 5.
Governor Gavin Newsom has emphasized the importance of moving forward, despite past decisions that cannot be reversed. He has also indicated that public-private partnerships will be essential for the project’s continuation. The latest state budget proposal includes at least $1 billion per year in funding for the next 20 years.
The review’s findings have sparked mixed reactions. Some lawmakers, like State Senator Tony Strickland, have called the project a failure and suggested reallocating funds to other transit initiatives. Meanwhile, a recent poll indicated that 67% of registered voters still support the high-speed rail project, viewing it as vital for alleviating traffic congestion and boosting economic opportunities in California.
Transit advocates and Democratic lawmakers have criticized the federal review, claiming it misrepresents the project’s potential benefits. They argue that the high-speed rail is not just a transportation project but a means to enhance commerce and improve the quality of life for Californians.
As the situation unfolds, the California High-Speed Rail Authority is preparing to respond to the federal review, hoping to secure the necessary funding to continue what they believe is a critical infrastructure project for the state.