Trump Administration Pulls $175 Million More from California High-Speed Rail

 Trump Administration Pulls $175 Million More from California High-Speed Rail – An Escalating Crisis of Cost, Management & Safety

By Michael Mick Webster

Syndicated investigative reporter

August 2025

Federal Funds Withdrawn: What’s Being Cut—and Why

The Department of Transportation (DOT) under President Trump has announced the latest step in halting federal support for California’s ambitious high-speed rail project. Roughly $175 million in previously approved grants are being withdrawn, targeting crucial components such as grade separations, overcrossings, the design of the Transbay Terminal, and a station in Madera—all intended to enhance safety by separating rail and road traffic. San Francisco ChronicleReuters

This marks a continuation of the administration's aggressive rollback of support for the project, which includes a prior revocation of $4 billion in federal funding. The trajectory reflects increasing frustration in Washington with what officials describe as persistent delays, unsafe planning, and runaway costs. PoliticoThe GuardianAP News+1

Labeling It a “Boondoggle” and a Safety Hazard

Transportation Secretary Sean Duffy did not mince words in characterizing the project. In DOT communications, he referred to the venture as a “boondoggle,” asserting that there is no viable path forward for completion. He criticized the project’s track record of mismanagement, waste, systemic delays, and cost overruns. Federal Railroad AdministrationDepartment of Transportation+1X (formerly Twitter)

Passing commentary emphasized that despite nearly $7 billion in federal spending, not a single high-speed rail track has been laid, and minimal progress had been made toward operational readiness. New York PostFederal Railroad AdministrationFox BusinessOversight Committee

Financial Fiasco: Skyrocketing Costs and Growing Shortfalls

• Initial Vision: Voters approved a $33 billion, 800-mile Los Angeles–San Francisco line in 2008, with a 2020 completion goal.
• Current Reality: The project has shrunk to a 119-mile Central Valley segment linking Merced to Bakersfield, with projected costs ballooning to between $89 billion and $128 billion. AP NewsThe GuardianWikipediaReuters
• Spent So Far: Approximately $14 billion has been expended on early design and construction—some 119 miles of guideway and infrastructure elements—yet no operational track exists. AP NewsWikipediaNew York Post
• Compliance Report Findings: A comprehensive FRA report outlined 9 major deficiencies, including a $7 billion funding gap, missed deadlines, overoptimistic ridership forecasts, inadequate contingency planning, and reliance on unstable funding sources. Federal Railroad AdministrationDepartment of TransportationOversight CommitteeWikipedia

Safety at Risk: Disrupting Critical Protections

Grade separations and overcrossings—project components recently cut—are essential for segregating vehicle and pedestrian traffic from high-speed rail, significantly reducing accident risks. Critics, including former High-Speed Rail Authority chair Dan Richard, denounced the cuts as reckless, likening them to a “brain dead” move that endangers public safety regardless of rail construction status. San Francisco Chronicle

Mismanagement, Waste, and Legal Fallout

• Audits and Oversight: The FRA investigation and internal inspector general reports have flagged over 1,000 change orders, procurement delays, and a lack of credible funding strategies. New York PostFederal Railroad AdministrationOversight Committee
• Materials and Construction Challenges: Costly delays due to utility relocations, permitting hurdles, land acquisition issues, and contractor claims have driven costs further upward. Streetsblog CaliforniaWikipedia
• Political and Legal Clash: California Governor Gavin Newsom called the cuts politically motivated—“a gift to China”—and initiated legal action, accusing the administration of unlawful retaliation. State officials argue the Central Valley segment is progressing and entering track-laying phases. The GuardianPoliticoKCRAGolden Gate XpressAP News+1

Looking Ahead: Funding Void, Safety Gap, and Strategic Uncertainty

Aspect	Summary
Money	Hundreds of millions cut, billions spent with no usable track in place.
Woes	Mismanagement, systemic cost overruns, and missed milestones.
Safety	Vital safety infrastructure at risk due to funding pullback.
Next Steps	Legal battle underway; uncertain path to securing funding or completion.

Final Assessment

The Trump administration's decision to rescind $175 million in additional federal funds adds fresh urgency to the deteriorating viability of California’s high-speed rail project. Labelled a “boondoggle,” the line is mired in escalating costs, delayed timelines, and a growing safety deficit. While proponents emphasize construction progress and safety improvements underway, the financial and managerial cracks are deepening—and the path forward is increasingly obstructed by political, legal, and logistical challenges.