Trump Ends Federal Funds for California Rail Project

The Trump administration has terminated approximately $4 billion in unspent federal funding for California's high-speed rail project, citing years of missed deadlines, cost overruns, and a lack of completed high-speed track. The Federal Railroad Administration found the project in default of grant terms, with costs escalating from $33 billion to as much as $135 billion. President Trump and Transportation Secretary Sean Duffy criticized the project and state leadership, promising that federal dollars will no longer support it. California officials, including Governor Gavin Newsom, condemned the move as politically motivated and pledged to fight it in court, asserting the state is still leading in U.S. high-speed rail development. The funding cut is expected to trigger legal challenges and could prompt further reviews of related federal grants. Despite the loss of federal support, California's High-Speed Rail Authority plans to proceed using state funds.