Delays and Cost Overruns Shadow the Project
California Gov. Gavin Newsom, a Democrat, blasted the grant termination in July, calling it “petty, political retribution” driven by Republican President Donald Trump’s personal animus toward California and the rail project rather than the facts.
The funding cuts mark another obstacle in a 16-year push to link Los Angeles and San Francisco by a three-hour train ride — a vision billed as the fastest passenger rail service in the United States.
Originally slated for completion by 2020 at a cost of $33 billion, the project is now projected to cost between $89 billion and $128 billion, with service not expected until 2033. Voters approved the first bond issue in 2008. Since then, the project has built more than 50 major structures — bridges, overpasses, undercrossings and viaducts — and completed nearly 80 miles (130 kilometers) of guideway.
More Federal Cuts, New Funding Paths
In August, the Transportation Department canceled an additional $175 million tied to four high-speed rail projects, following the earlier termination of the $4 billion in grants.
State officials say the latest setback will not derail construction. The rail authority announced this week it is launching a process to court private investors and developers by summer 2026. On Friday, the agency said it continues to make progress despite the loss of federal dollars.
“Rather than continuing to spend time and money challenging the termination, the state is moving forward without them,” the authority said, pointing to legislation signed in September that guarantees $1 billion a year for the program through 2045.
