The Trump administration announced on Wednesday that it has withdrawn approximately $4 billion in federal funding for California’s high-speed rail efforts, following extensive criticism of the project over the years.
President Donald Trump’s Department of Transportation stated that taxpayer money would not be invested in a state initiative designed to connect major cities with bullet trains, which has been ongoing for 16 years.
“This mess is California’s fault. Governor Gavin Newsom and the Democrats have allowed this waste to happen for far too long,” Trump’s transportation secretary stated.
In a tweet, he emphasized that the apparent incompetence and corruption surrounding California’s high-speed rail project is evident, citing a projected cost increase from $330 billion to $13.5 billion, with no completion date in sight. He also suggested that instead of this project, they could provide about 200 free flights to residents of Los Angeles and San Francisco.
California’s State Auditor, along with Newsom, condemned this decision by the Trump administration, claiming the railway plan has been deemed too expensive for several years.
“Trump wants to put China ahead of California, and we won’t let that happen. We’re exploring every option to address this illegal act,” Newsom commented in a statement.
Ian Choudri, CEO of the California High Speed Railroad Administration, defended the project, asserting that the grants were legally binding and had been repeatedly confirmed by federal reviews. He remarked that these funds were not simply cancelled without justification.
The project, which began construction on an 800-mile stretch in 2015, was initially projected to cost $33 billion and be completed around 2020. However, progress has been slow, with the state notifying the Trump administration in June that it could take up to 20 years to finish even the “early operational segment.”
California has invested heavily in its rail plan, spending hundreds of millions on environmental targets that are sensitive to the climate. Various regulatory challenges and cost overruns have also hindered construction.
The state auditor previously noted in November 2018 that “poor decision-making and contract management” have led to significant cost overruns and delays.
Newsom himself remarked the following year about the challenges of high-speed rail, saying that the current plans were too costly and time-consuming.
Ultimately, the Department of Transportation indicated that California’s actions were in violation of the federal grant terms, with warnings issued as far back as June.
On Wednesday, Duffy stated, “It’s time for this boondoggle to end.”
