^{Photo: CNBC}

The Trump administration has escalated its funding battle with California’s embattled high-speed rail project, announcing the withdrawal of an additional $175 million in federal support. The decision, unveiled by Transportation Secretary Sean Duffy, comes just weeks after the administration canceled $4 billion in federal grants, leaving the future of the project more uncertain than ever.

Federal Funding Withdrawn Again

Duffy said the new cuts would affect four key elements of the project: track extensions, grade separations, design work, and construction of a rail station in Madera. He cited ballooning costs—already at $15 billion spent—and a lack of visible progress as justification.

“In twenty years, California has not been able to lay a single track of high-speed rail,” Duffy declared. “The waste ends here. As of today, the American people are done investing in California’s failed experiment. Instead, we will direct funds to well-managed projects that can actually deliver results.”

The Department of Transportation has also directed the Federal Railroad Administration (FRA) to review all remaining obligated grants for the project.

California Pushes Back

The California High-Speed Rail Authority responded sharply, accusing the administration of political interference. “This is a continuation of the Trump Administration’s illegal, politically motivated, and baseless attack on California High-Speed Rail and Central Valley communities,” a spokesperson said.

The authority argued that despite delays, the state is still committed to delivering the first true high-speed rail system in North America. Officials pointed to recent efforts, including the purchase of track components, as evidence that progress is being made.

A Project Years in the Making

The California high-speed rail vision was born in 2008, when voters approved a ballot measure to connect San Francisco and Los Angeles in under three hours. However, the scope of the project has since been scaled back to a 170-mile stretch between Merced and Bakersfield.

According to FRA estimates, the revised plan will cost approximately $22 billion, with a projected completion date pushed to 2033. Most funding now comes from the state, not the federal government, after years of disputes over deadlines, contracts, and feasibility.

Mounting Legal and Political Battles

California has already filed suit against the Department of Transportation, arguing that both the $4 billion withdrawal in July and this latest $175 million cut are unlawful. Governor Gavin Newsom and federal officials have traded public criticisms, with Duffy writing in an op-ed that Newsom “has no clue what functional government looks like.”

The FRA previously raised “serious concerns” about the project’s ability to meet contractual obligations, citing missed deadlines and escalating costs. Critics have labeled the rail line a “boondoggle,” while supporters insist it is an essential investment in sustainable infrastructure.

The Broader Stakes

The high-speed rail project is not just about connecting cities—it has become a flashpoint in the larger national debate over infrastructure investment, climate-friendly transportation, and federal-state relations. While California maintains that the project represents the future of clean, efficient travel, opponents argue it has become a cautionary tale of overpromising and underdelivering.

With billions already spent, lawsuits underway, and political tensions at their peak, the fate of America’s most ambitious rail project remains uncertain.

‍