California high-speed rail funding faces new uncertainty as President Trump declared the U.S. will no longer support the project due to soaring costs. This is reported by the railway transport news portal Railway Supply.

The U.S. Transportation Secretary has initiated an investigation into California’s high-speed rail project, raising concerns over rising costs and delays. The project has already surpassed budget estimates, with no completion date in sight.
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During a meeting with Canadian Prime Minister Mark Carney, Trump stated that the federal government would not fund the California high-speed rail, citing years of overruns.

Voters approved $10 billion in bonds for the rail in 2008, but total costs have surged. Initial estimates of $40 billion have exploded to between $89 billion and $128 billion.

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Trump has repeatedly slammed the project as wasteful. His administration began reviewing $4 billion in grants issued by the Obama and Biden administrations.

The U.S. Department of Transportation is focusing on the Merced-to-Bakersfield section in the Central Valley. This stretch alone could exceed the original $33 billion total.

California High-Speed Rail Sparks Political Tensions

Governor Gavin Newsom’s office warned that abandoning construction now would waste billions and weaken U.S. competitiveness in infrastructure.

The California High-Speed Rail Authority highlighted construction progress across 119 miles and 15,000 jobs created. Work on extensions to Merced and Bakersfield continues.

In 2021, President Biden restored $929 million in funding revoked by Trump in 2019. But criticism remains over delays and mounting expenses.

California High-Speed Rail Progress Despite Criticism

Supporters say the California high-speed rail delivers long-term value. The current phase includes critical civil works and prepares for future passenger service.

Opponents argue the budget crisis undermines public trust. They claim project goals remain distant, with no set timeline for service between San Francisco and Los Angeles.

As funding dries up and reviews intensify, the California high-speed rail project faces growing pressure to deliver results or risk collapse.

Source: www.reuters.com

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