The US Department of Transportation has cancelled $4 billion in unspent federal funds for the California high-speed rail project. It cites repeated delays, cost overruns, and a lack of results despite $15 billion already invested and more than 16 years of development.
Transportation Secretary Sean Duffy called the management of the California High-Speed Rail Authority (CHSRA) “incompetent” and “possibly corrupt”, stressing that “federal funds are not a blank check”.
In response, Governor Gavin Newsom has announced a lawsuit against the Trump administration, calling the decision “political retaliation” that harms the Central Valley and puts thousands of jobs at risk.
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The CHSRA claims to have fulfilled all legal obligations and highlights the construction of 275 km of line and the creation of 15,000 jobs, as well as underscoring the unique value of the infrastructure for the state’s future.
The project, approved in 2008 to link San Francisco and Los Angeles in under three hours, now has a budget exceeding $100 billion and faces an uncertain future due to funding withdrawals and lengthy delays.