July 17 (UPI) — The Trump administration has revoked billions in federal funding for California’s high-speed rail project, amid a deepening row between the Republican president and the Democratic-led state.
Transportation Secretary Sean Duffy announced Wednesday that the Federal Railroad Administration terminated about $4 billion in unspent federal funding for the project that will connect San Francisco and Los Angeles by a high-speed rail system with plans to then extend to Sacramento and San Diego.
California voters approved the plan in 2008. It was supposed to be completed four years ago at a cost of $33 billion, though the price tag has since climbed to between $89 billion and $128 billion. Passenger service is now expected to start between 2030 and 2033.
In revoking the funds, Duffy called the plan a “boondoggle.”
“This is California’s fault,” he said in a statement. “Gov. [Gavin] Newsom and the complicit Democrats have enabled this waste for years. Federal dollars are not a blank check — they come with a promise to deliver results.”
Trump and Newsom have feuded for years. Since returning to the White House in January, Trump has used his executive powers to sue California over alleged Title IX violations on transgender athletes participating in women’s sports. He also deployed thousands of California National Guard troops to Los Angeles to quell protests that erupted in response to immigration raids being conducted in the city.
Newsom has responded by launching lawsuits challenging the Trump administration on a slew of executive actions, from the president’s tariffs to withholding billions in funding for electric vehicle charging infrastructure.
Trump, in a separate statement Wednesday, said he was “thrilled” to announce the money had been revoked.
“The Railroad we were promised still does not exist, and never will,” he said on his Truth Social media platform. “This project was Severely Overpriced, Overregulated and NEVER DELIVERED.”
Duffy said it was revoking the funds after a review found that the project was in default of the terms of the two grants awarded. There were nine areas of noncompliance, including missed deadlines and budget shortfalls.
Along with canceling the funds, Duffy said he has directed the Federal Railroad Authority to review other grants the project has been awarded.
“It’s time for this boondoggle to die,” he said.
It’s expected that California will challenge the move in court.
“Canceling these grants without cause isn’t just wrong — it’s illegal,” California High Speed Rail Authority CEO Ian Choudri said in a statement.
According to Choudri, the project has “met every obligation” for the grants, confirmed by repeated federal reviews, as recently as February.
California officials say the project has entered its track-laying phase. More than 50 major railway structures, including bridges and overpasses, have already been completed over 60 miles of guideway.
“This is no time for Washington to walk away on America’s transportation future,” Choudri said.
