Trump’s FRA has revoked $4 billion in federal funding for California’s high-speed rail project, triggering a fierce legal battle while the state pledges to keep the construction moving forward. This is reported by the railway transport news portal Railway Supply.

Trump’s FRA Decision Sparks Major Funding Clash

Trump’s FRA Cancels $4B for California High-Speed Rail
Photo – California High-Speed Rail Authority

U.S. Transportation Secretary Sean Duffy announced the decision yesterday, stating the Federal Railroad Administration canceled the remaining unspent funds and will review all related grants. Officials said California failed to meet critical requirements under the grant agreement.

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The FRA’s compliance review concluded the California High-Speed Rail Authority lacked a viable path forward. Federal authorities plan to consult the Justice Department on possible legal actions, including reclaiming previously allocated funds.

Trump’s FRA Faces Pushback From California Leaders

Governor Gavin Newsom and CHSRA CEO Ian Choudri called the move illegal, insisting the state met every federal obligation. Newsom argued Trump is abandoning America’s rail future and vowed to challenge the decision in court.

Despite the funding fight, California continues to make progress. Officials report that all environmental reviews for 463 miles are complete, Caltrain electrification is finished, and more than 50 major structures, including bridges and viaducts, are already built.

Construction crews have laid over 60 miles of guideway and recently began track installation near Bakersfield. The project has created more than 15,000 jobs, and passenger service is expected between 2030 and 2033.

Choudri emphasized that canceling the grants violates legally binding agreements. “We’re not backing down,” he said. “California remains committed to delivering America’s only high-speed rail system.”

Source: www.progressiverailroading.com

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