California High-Speed Rail Faces Major Setback After $4 Billion Funding Cut

California High-Speed Rail faces a severe setback as the Federal Railroad Administration ends $4 billion in federal funding following a critical transportation report from Washington. This is reported by the railway transport news portal Railway Supply.

President Donald Trump supported the move on Truth Social, arguing that federal money should never finance what he called a costly scam. Investigators ruled the project breached grant terms and lacked capacity to deliver its first operating segment by 2033.

The California High-Speed Rail Authority insists trains could run by 2030, but the initial goal was 2020. Costs surged from $33 billion to between $89 billion and $128 billion, fueling fierce criticism.

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California High-Speed Rail Timeline and Budget Challenges

California voters approved a $10 billion bond in 2008 to build a system connecting Los Angeles and San Francisco. However, constant delays and escalating expenses have turned the project into a political flashpoint.

Governor Gavin Newsom condemned the funding cut, calling it an attempt to abandon Central Valley communities and weaken U.S. competitiveness. He argues that ending the grant violates federal law and vowed construction will continue.

California High-Speed Rail Construction and Future Plans

Most project funding comes from state sources. Newsom’s budget allocates $1 billion annually for the next two decades to complete the first operating phase. This financial plan highlights California’s commitment despite federal withdrawal.

Board member Henry Perea confirmed the Authority anticipated this decision and prepared for months. “We have enough money for two years and are working with lawmakers to keep this a California-driven effort,” he said.

Construction currently spans 171 miles with more than 50 major structures, including bridges and viaducts. While political tensions rise, California continues to frame high-speed rail as essential infrastructure for the state’s long-term economic future.

Source: abc7.com

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