Federal Funds for California High-Speed Rail Project Under Immediate Threat
Federal Funds for California High-Speed Rail Project Under Immediate Threat
The future of California’s ambitious high-speed rail project is in jeopardy as the Federal Railroad Administration (FRA) has formally put the state on notice, citing a breach of federal grant agreements. Transportation Secretary Sean Duffy announced on June 4, 2025, that the California High-Speed Rail Authority (CHSRA) has ‘no viable path to complete this project on time or on budget,’ threatening to divert nearly $4 billion in federal funds to other projects.
The FRA’s Compliance Review Report, issued to CHSRA CEO Ian Choudri, meticulously lists nine ‘broken promises,’ including significant missed deadlines, persistent funding gaps, and insufficient resources to complete the project as initially promised. Acting Administrator Drew Feeley highlighted ‘poor planning’ as a major contributing factor, stating that ‘CHSRA is not using state or federal funding to advance responsibly the CHSR Project.’
The CHSRA has strongly refuted the allegations, expressing its disagreement with the report. A spokesperson for the authority emphasized that the majority of the project’s funding comes from the state of California and confirmed plans to ‘correct the record’ in its formal response to the FRA. They reiterated the state’s unwavering commitment to building the nation’s first true high-speed rail system, connecting key population centers.
The federal grants, totaling approximately $4 billion, are designated for the Central Valley segment of the project, spanning about 170 miles between Merced and Bakersfield. This latest development follows a February 2025 inspector general’s review that deemed the 2033 completion schedule ‘unlikely’ due to ongoing funding and construction challenges. The CHSRA was given seven days to provide an initial response and an additional 30 days to dispute the findings, or face the immediate loss of its critical federal funding.
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