The Trump administration has cancelled an additional $175m in federal funding for California's high-speed rail project, the US Department of Transportation announced on Tuesday. The funds were allocated for grade separation, over-crossings, design work, and a station in Madera. This follows the withdrawal of $4bn in federal grants earlier this summer.
California sued in July to challenge the earlier funding cancellation, calling it illegal. The project, which aims to connect Los Angeles and San Francisco via a three-hour train ride, has faced numerous delays and cost overruns. Initially projected to cost $33bn and be completed by 2020, the estimated cost has now risen to between $89bn and $128bn, with partial service in the Central Valley not expected until 2033.
The funding cuts mark the latest clash between President Donald Trump and California Governor Gavin Newsom, a potential 2028 Democratic presidential candidate. Earlier on Tuesday, the Transportation Department also threatened to cancel $33m in safety funding, accusing California of failing to enforce federal English-language requirements for truck drivers.
In July, Newsom described the grant termination as “petty, political retribution, motivated by President Trump’s personal animus toward California and the high-speed rail project.” A previous attempt by Trump in 2019 to revoke $929m in grants was reversed in a 2021 settlement under President Joe Biden.
