U.S. Transportation Secretary Sean P. Duffy announced the termination of funds following a comprehensive 315-page compliance review by the Federal Railroad Administration (FRA) released in June. The review concluded that the California High-Speed Rail Authority (CHSRA) could not meet its obligations under the federal grant agreements and has no viable plan to complete the project.
In a 22-page letter sent to the CHSRA, the FRA said the decision to terminate funding is effective immediately. The DOT said that roughly $15 billion has been spent on the project, with not a single mile of high-speed rail track laid.
"Trump wants to hand China the future and abandon the Central Valley. We won't let him," Newsom said hours after Duffy's announcement.
Newsom said the state is "putting all options on the table" to challenge the administration's move.
The project, which he said is now entering its track-laying phase, has more than 171 miles under active construction between Merced and Bakersfield and over 50 major structures completed, including bridges and viaducts. The CHSRA estimates the full cost of the project to be $128 billion, up from an initial estimate of $33 billion. California's high-speed rail was projected to be completed by 2020.
"These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025," Choudri said. "America's only high-speed rail project underway is fast approaching the track-laying phase, with 15,500 jobs created and 60 miles of guideway already complete."
"This is no time for Washington to walk away from America's transportation future," Choudri added.
Democratic leaders, including House Speaker Emerita Nancy Pelosi and Senators Alex Padilla and Adam Schiff, have accused the Trump administration of using the review process of the high-speed rail project to punish California for political reasons. Following the compliance review, Rep. Dave Cortese (D-San Jose) called the Trump administration's intent to terminate funding "partisan theatrics" that seek to derail clean transportation.
"California High-Speed Rail is the worst public infrastructure disaster in U.S. history," Kiley said. "A project that was supposed to be finished five years ago at a cost of $33 billion is now projected to take until the end of the century at a cost of $130 billion. I am grateful that President Trump and Secretary Duffy are sparing our taxpayers by cutting off federal funding. The state must now follow suit, wind this disastrous project down, and spend our transportation dollars where they are needed: our roads."
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