Napa, CA – California’s ambitious high-speed rail project has once again come under intense federal scrutiny, as the Trump administration’s Department of Transportation declared the initiative lacking a “viable path” forward and threatened to withdraw billions of dollars in federal funding.
In a compliance review report released this week, U.S. Transportation Secretary Sean Duffy cited widespread mismanagement, excessive costs, and chronic delays as key reasons the project is failing to meet the terms of its federal grants. “Here’s the cold, hard truth – there’s no viable path to complete the rail project on time or on budget. California is on notice,” Duffy warned, adding that funds may soon be redirected to other infrastructure projects.
California’s high-speed rail has been a long-standing vision aimed at transforming travel in the state. First approved by voters in 2008 with $10 billion in funding, the bullet train was designed to connect San Francisco and Los Angeles in under three hours, initially estimated to cost $33 billion and slated for completion by 2020. However, seventeen years later, the project has yet to realize that goal, with cost estimates soaring past $100 billion.
Rather than building the originally planned 800-mile system, the state has now shifted focus to a 171-mile stretch through California’s Central Valley. This segment, expected to cost more than $35 billion, is scheduled for completion by 2033. The project recently began laying track on this section after receiving full environmental clearance in 2024. Despite this progress, public frustration has mounted amid the mounting costs and long delays.
Federal involvement has fluctuated over the years. In 2019, the Trump administration cut nearly $1 billion in funding, but the Biden administration restored those funds and subsequently allocated an additional $3.3 billion. Nonetheless, the majority of the financial burden remains with California, which has already contributed 82% of the $14 billion spent so far.
Despite the criticisms, Governor Gavin Newsom remains steadfast. “No state in America is closer to launching high-speed rail than California,” he said earlier this year, highlighting the shift into the track-laying phase and progress on key infrastructure components.
However, Drew Feeley, acting administrator of the Federal Railroad Administration (FRA), expressed deep concerns in the report, stating the state lacks “a viable plan to deliver even that partial segment on time.” He noted the project’s shrinking scope—from 800 miles to 500 miles, then 171 miles, and now possibly only 119 miles of disconnected track. The FRA’s review also revealed unrealistic assumptions, numerous contract change orders, and a $7 billion funding gap without a credible plan to address it, citing a recent inspector general report.
The California High-Speed Rail Authority has been given 30 days to provide documentation demonstrating compliance with federal grant terms. The authority pushed back on the FRA’s findings, calling them “misguided” and pointing to the governor’s proposed budget, which includes $1 billion annually for the next two decades.
“We remain firmly committed to completing the nation’s first true high-speed rail system connecting the major population centers in the state,” the authority said in a statement.
As the deadline approaches, the future of California’s high-speed rail project hangs in the balance, caught between federal skepticism and state determination to complete one of the most ambitious infrastructure projects in the nation.