Trump's FRA revokes federal funds for California high-speed rail

The Federal Railroad Administration under President Donald Trump has terminated about $4 billion in unspent federal funding for California’s high-speed rail project, U.S. Transportation Secretary Sean Duffy announced yesterday.

In addition to canceling the $4 billion slated for the California High Speed Rail Authority (CHSRA), Duffy has directed the FRA to review other obligated and unobligated grants related to the CHSRA project. The U.S. Department of Transportation will also consult with the U.S. Department of Justice on the finding of FRA’s recent compliance review, including potentially clawing back funding related to the project and other potential issues, according to a USDOT press release.

The decision to revoke the federal funding follows the FRA's recent compliance review that found the project has no viable path forward, according to USDOT. Yesterday, USDOT officials said the CHSRA was given two opportunities to respond in a way that was consistent with the grant agreements, but neither response addressed FRA’s concerns.

"CHSRA simply cannot meet its obligations under the grant agreement," they said. The FRA's letter to CHSRA CEO Ian Choudri can be downloaded here.

“This is California’s fault. Gov. [Gavin] Newsom and the complicit Democrats have enabled this waste for years," Duffy said in the press release. "After over a decade of failures, CHSRA’s mismanagement and incompetence has proven it cannot build its train to nowhere on time or on budget. It's time for this boondoggle to die."

During Trump's first administration, the FRA revoked federal funding for the project in 2019. The decision was temporarily halted when California filed a legal challenge. In 2021, President Joe Biden partially restored the funds.

In a prepared statement, Newsom and Choudri said this latest takeback of the project's federal funding is illegal. The Trump administration's action comes as the project enters the track laying phase, is actively building across 171 miles, has built more than 50 major railway structures — including bridges, overpasses and viaducts — and completed over 60 miles of guideway, according to Newsom's statement.

"Trump wants to hand China the future and abandon the Central Valley," Newsom said. "We won’t let him. With projects like the Texas high-speed rail failing to take off, we are miles ahead of others. We’re now in the track-laying phase and building America’s only high-speed rail. California is putting all options on the table to fight this illegal action."

In January, Newsom joined Choudri, local leaders and rail construction workers near Bakersfield to break ground on the railhead. That part of the project enables the authority to begin laying track, which is one of the last steps in construction. Laying track can occur only after land acquisition, environmental clearances and completion of supporting structures such as bridges, overpasses and viaducts, Newsom administration officials said.

"Canceling these grants without cause isn’t just wrong — it’s illegal,” said Choudri. “These are legally binding agreements, and the authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025."

According to the Newsom administration, high-speed rail has marked significant progress in the past year, with all environmental reviews spanning 463 miles from Los Angeles to the San Francisco Bay Area complete, the electrification of Caltrain complete, trainset selection underway, and station and track construction on deck.

In addition, work has continued with partner rail systems to create a Southwest regional high-speed rail network and more than 15,000 jobs have been created. Passenger service is expected to begin between 2030 and 2033, according to Newsom's office.