.@USDOT has found that the California high speed rail project is in default of its federal grant awards totaling $4 billion.
Here’s the cold, hard truth – there’s no viable path to complete the rail project on time or on budget. California is on notice — If they can’t deliver… https://t.co/ltkO5Nh2dT
— Secretary Sean Duffy (@SecDuffy) June 4, 2025
California’s high speed rail project is facing a financial reckoning after the Federal Railroad Administration declared it in default on $4 billion in federal grants. The latest report from the Department of Transportation exposes years of mismanagement, missed deadlines, and unrealistic ridership projections, raising serious doubts about whether the project will ever be completed.
The numbers tell the story. The rail system was originally planned as an 800-mile network, connecting San Francisco to San Diego. Over time, the scope shrunk to 500 miles, then 171 miles, and now just 119 miles. The federal review describes the project as a Sisyphean endeavor, warning that even with continued funding, there is no viable path forward.
Taxpayers have already poured billions into this project. Since 2008, the California High Speed Rail Authority has received $6.9 billion in federal funding, yet no high speed track has been laid. The FRA’s report states that the project is far short of the funding needed to complete even a fraction of the promised system.
Federal officials are losing patience. Transportation Secretary Sean Duffy has put the rail authority on notice, stating that if they cannot deliver on their commitments, the funds will be reallocated to other infrastructure projects. The FRA has given California 37 days to respond, after which the grants could be terminated.
California lawmakers are pushing back. Senators Alex Padilla and Adam Schiff released a statement blaming the Trump administration, arguing that high speed rail is the future of transportation. They insist that progress is being made, despite the FRA’s findings.
The reality is clear. The California High Speed Rail project has become one of the most expensive failures in modern infrastructure history. With costs ballooning and deadlines repeatedly missed, the federal government is finally stepping in to hold officials accountable.
Sources:
https://www.yahoo.com/news/california-high-speed-rail-project-212853883.html