Federal Funds Cut from California High-Speed Rail
The Trump administration announced on Wednesday that approximately $4 billion in federal funding has been withdrawn from California’s high-speed rail projects, amid ongoing criticism of their management.
President Trump’s Department of Transportation indicated that taxpayers will not fund a state project that aims to connect major cities via high-speed trains over a 16-year time frame.
“This is California’s doing. Governor Gavin Newsom and the Democrats have allowed this waste to continue for far too long,” a spokesperson stated.
Governor Newsom and California’s high-speed rail project exemplify government inefficiency and corruption. The estimated cost has ballooned from $330 billion to now $13.5 billion, and there’s no end in sight. Meanwhile, we could provide all residents in LA and SF around 200 free flights instead.
California’s State Auditor and Newsom voiced their concerns about the railway plan being too expensive over the years, publicly condemning the Trump administration’s decision.
“Trump wants to shift focus to China and abandon the Central Valley. We won’t let that happen. California will explore all options to counter this improper action,” Newsom said in response.
Ian Choudri, CEO of the California High Speed Railroad Authority, expressed that “these grants aren’t cancelled without justification. They’re legally binding agreements, and all obligations have been consistently met as verified in federal reviews.”
The project has been receiving substantial funding from the state, as noted in a recent expense report.
Construction of the 800-mile project started in 2015, initially planned to cost $33 billion and be completed by 2020. However, progress has been slow. The state informed the Trump administration in June that it could take as long as 20 years to finish the first operational section.
Throughout this period, California has already spent hundreds of millions towards environmental considerations tied to the rail project. Various regulatory hurdles, alongside budget overruns, contributed to these delays.
As the state auditor highlighted in November 2018, “The flawed decision-making and poor contract management have led to billions in overruns and significant delays.”
“Let’s reevaluate the high-speed rail plans,” Newsom stated the following year, admitting, “The current approach is too costly and takes too long.”
The final decision from the DOT stemmed from a compliance review issued in June, warning California of violations related to the federal grants, stating there was no “viable path” forward for the high-speed rail system.
“It’s time for this project to end,” Duffy remarked on Wednesday.
