The Trump administration has raised serious concerns about the future of California’s ambitious High-Speed Rail project, pointing to a $7 billion funding shortfall that threatens the completion of a key section. On Wednesday, the U.S. Department of Transportation (USDOT) warned it may revoke nearly $4 billion in federal grants unless the state can address the issues.
In a 315-page report, the Federal Railroad Administration (FRA) cited missed deadlines, underestimated costs, and questionable ridership projections. Central to the report is the state’s failure to secure the additional $7 billion needed to finish the initial 171-mile segment between Merced and Bakersfield.
The USDOT has given California until mid-July to respond before deciding whether to terminate the grants.
The California High-Speed Rail Authority, which is overseeing the project, continues construction on the Central Valley section—intended to operate at speeds up to 220 mph (350 km/h) and begin passenger service by 2030.
As of now, more than 60 miles of guideway have been completed, and 54 of the 93 required structures are finished, with over 30 more under construction across Madera, Fresno, Kings, and Tulare counties.
Despite the funding concerns, the project has delivered significant economic impact. Since breaking ground, it has generated over 15,000 well-paying construction jobs, the majority of which have gone to Central Valley residents. Around 1,600 workers are deployed to construction sites each day.
The Authority has also secured full environmental clearance for 463 miles of track stretching from the Bay Area to downtown Los Angeles.
Meanwhile, another high-speed rail project—Brightline West—is underway. This privately funded route will connect Las Vegas to Southern California with trains reaching speeds of 200 mph (320 km/h). It is slated to begin operations in 2028. Both Brightline West and California’s state-run rail line recently received about $3 billion each in federal grants.
As California races to keep its high-speed rail dreams on track, the coming weeks may determine whether it can resolve its financial and operational hurdles or risk losing crucial federal support.
In a 315-page report, the Federal Railroad Administration (FRA) cited missed deadlines, underestimated costs, and questionable ridership projections. Central to the report is the state’s failure to secure the additional $7 billion needed to finish the initial 171-mile segment between Merced and Bakersfield.
The USDOT has given California until mid-July to respond before deciding whether to terminate the grants.
The California High-Speed Rail Authority, which is overseeing the project, continues construction on the Central Valley section—intended to operate at speeds up to 220 mph (350 km/h) and begin passenger service by 2030.
As of now, more than 60 miles of guideway have been completed, and 54 of the 93 required structures are finished, with over 30 more under construction across Madera, Fresno, Kings, and Tulare counties.
Despite the funding concerns, the project has delivered significant economic impact. Since breaking ground, it has generated over 15,000 well-paying construction jobs, the majority of which have gone to Central Valley residents. Around 1,600 workers are deployed to construction sites each day.
The Authority has also secured full environmental clearance for 463 miles of track stretching from the Bay Area to downtown Los Angeles.
Meanwhile, another high-speed rail project—Brightline West—is underway. This privately funded route will connect Las Vegas to Southern California with trains reaching speeds of 200 mph (320 km/h). It is slated to begin operations in 2028. Both Brightline West and California’s state-run rail line recently received about $3 billion each in federal grants.
As California races to keep its high-speed rail dreams on track, the coming weeks may determine whether it can resolve its financial and operational hurdles or risk losing crucial federal support.
