The U.S. Department of Transportation, led by Secretary Sean Duffy, has launched a formal review of California’s high-speed rail project to determine whether federal funding should continue. Speaking at a press conference held at Union Station in Los Angeles on Thursday, Duffy criticized the project’s management, calling it a financial burden on taxpayers with no clear end in sight.
“If California wants to continue to invest, that’s fine,” Duffy said. “We in the Trump administration are going to take a look at whether this project is worthy of continual investment.”
Why Is the Project Under Review?
Duffy’s announcement comes after several Republican state lawmakers sent a letter to President Trump urging a review of the rail’s federal funding.
The high-speed rail project, first approved by California voters in 2008, originally aimed to connect Los Angeles and San Francisco with a 500-mile network. Initially expected to cost $33 billion and be completed by 2020, the project has faced multiple delays and soaring costs:
- The first segment—a 171-mile stretch from Bakersfield to Merced—is now projected to cost between $32 billion and $35 billion.
- Operations for this initial phase are targeted for 2030.
- Completing the full route could require up to an additional $100 billion.
The Future of Federal Funding
The Biden administration previously committed over $4 billion in federal funding for the rail project. However, Duffy’s review will evaluate whether the California High-Speed Rail Authority (CHSRA) has upheld its obligations under federal agreements, particularly regarding deadlines and budget management.
“For too long, taxpayers have subsidized this massively over-budget and delayed project,” Duffy stated. “President Trump is right—this project is in dire need of an investigation.”
Protests and Political Reactions
The announcement of the review was met with protests from activists supporting the rail project, who interrupted the press conference with chants and shouting. In response, Duffy dismissed the demonstrators, urging them to address their frustrations to Governor Gavin Newsom and Democratic lawmakers.
“If you want to shout at someone, go to the governor’s mansion,” Duffy said. “Go talk to Democrats who brought us this crappy project.”
California’s Defense of the Project
Despite the federal scrutiny, state leaders, including Governor Gavin Newsom, continue to champion the high-speed rail as a transformative infrastructure project. Newsom recently highlighted the completion of a key stretch of the project and the beginning of track-laying work in Kern County.
“No state in America is closer to launching high-speed rail than California,” Newsom stated last month.
The CHSRA also released a 2024 Economic Impact Report that outlines the positive effects of the project so far:
- Nearly 15,000 jobs created
- $8.3 billion in labor income generated
- $21.8 billion in total economic output
Ongoing Legislative Support
In response to Duffy’s review, Sen. Dave Cortese from Silicon Valley introduced a bill aimed at studying residential and commercial development opportunities along the high-speed rail corridor. He defended the project’s financial transparency, noting that the independent Office of the Inspector General (OIG) has been actively monitoring its progress.
“Every dollar of the project is accounted for,” Cortese stated. “The OIG’s sole focus is on improving oversight and accountability.”
Public Opinion on California’s High-Speed Rail
Despite cost overruns and delays, public support for the rail project remains relatively strong. A recent Emerson College poll found that:
- 54% of Californians believe the high-speed rail project is a good use of state funds.
- Many residents see the potential for reduced traffic, environmental benefits, and long-term economic growth.
What’s Next for the Project?
The review by the Department of Transportation will investigate whether the rail authority has met its federal obligations and if ongoing funding is justified. A decision regarding the future of federal investment is expected later this year.
In the meantime, California continues moving forward with construction on the Bakersfield-to-Merced section while officials prepare for potential funding challenges that could reshape the project’s timeline and scope.
