politics

Trump Administration to review whether California high-speed rail is ‘worthy' of federal funds

President Trump and Republican California lawmakers seized on a new report from the project's inspector general indicating the project likely will not meet a key timeline goal.

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What to Know

  • California Republican lawmakers in Sacramento then sent a letter to President Trump late last week in support of an investigation into the state's beleaguered high-speed rail project.
  • A report by the project's inspector general released Feb. 3 on the first phase of what was planned as a statewide rail system indicated it is unlikely that the project can meet its goal of starting passenger service between Merced and Bakersfield by 2033.
  • Work is continuing on a 119-mile stretch linking the Central Valley communities of Merced, Fresno and Bakersfield. The target completion window is 2030 to 2033.

A top Trump Administration official said Thursday that federal funding for California's troubled high-speed rail project will be reviewed to determine whether the federal government will continue to provide money for construction.

U.S. Transportation Secretary Sean Duffy announced the federal funding review in front of a boisterous crowd at a news conference inside downtown LA's historic Union Station.

"If California wants to continue to invest, that's fine," Duffy said. "But we, the Trump administration, are going to take a look at whether this project is worthy of investment."

Duffy announced plans to direct the Federal Railroad Administration to initiate a compliance review of funding for the California High-Speed Rail Authority. Duffy said the review will focus on additional funds approved by the Biden Administration, but not yet allocated, for the Merced-to-Bakersfield rail connection, one portion of the construction project.

"We are off track," Duffy said. "The review will help determine whether billions of dollars in taxpayer money should be committed to high-speed rail."

Several speakers were met with shouts and jeers from a crowd gathered at Union Station in support of the project.

"California's high-speed rail disaster is the worst public infrastructure failure in U.S. history," said U.S. Rep. Kevin Kiley (R, 3rd District).

Kiley said he has introduced legislation to drop federal funding for the project. His comments drew vocal reaction from some supporters of the project assembled inside Union Station, the largest railroad passenger terminal in the Western United States, which was commissioned in 1933.

"There are probably ways that we can save money and there are probably ways we can trim here and there, but the thing is hard things are expensive, hard things are difficult, but in the end people are going to love this," said project supporter Ethan Tufts.

The California High-Speed Rail Authority released a statement after the Union Station announcement.

"We welcome this investigation and the opportunity to work with our federal partners," California High-Speed Rail Authority CEO Ian Choudri said. "With multiple independent federal and state audits completed, every dollar is accounted for, and we stand by the progress and impact of this project. California’s high-speed rail is 171 miles under active construction, with over 50 major structures completed, 14,700 jobs created, and more than 880 small businesses engaged. This investment has already generated $22 billion in economic impact, primarily benefiting the Central Valley."

President Trump has also pledged an investigation into the state’s high speed rail project, a probe legislative republicans say is long overdue. NBC4’s Conan Nolan talks with Republican Assemblywoman Alexandra Macedo on NewsConference aired on Feb. 16, 2025.   

Duffy's visit comes about a week after comments from President Trump about the project, indicating an investigation would be opened into its management following a new report from the project's inspector general indicating it will likely will not meet a key timeline goal.

"It is the worst-managed project I think I've ever seen," Trump said. "And, I've seen some of the worst. Billions and billions, hundreds of millions of dollars over budget.

"We're going to start an investigation into that. I've built for a living, and I've built on time and budget. It's impossible that something could cost that much."

Details about the investigation and a timeline were not available.

California Republican lawmakers in Sacramento then sent a letter to President Trump late last week in support of an investigation into the state's beleaguered high-speed rail project. The letter requests an examination of the viability of the project and to hold the High Speed Rail Authority accountable for its "mismanagement and broken promises."

The report by the project's inspector general released Feb. 3 on the first phase of what was planned as a statewide rail system indicated it is unlikely that the project can meet its goal of starting passenger service between Merced and Bakersfield by 2033.

California voters approved a bond measure for the rail project in 2008.

Work is continuing on a 119-mile stretch linking the Central Valley communities of Merced, Fresno and Bakersfield. The target completion window is 2030 to 2033.

"With a smaller remaining schedule envelope and the potential for significant uncertainty and risk during subsequent phases of the project, staying within the 2033 schedule envelope is unlikely," Belnap wrote. "In fact, uncertainty about some parts of the project has increased as the authority has recently made decisions that deviated from the procurement and funding strategies that were part of its plans for staying on schedule."

Republican State Assemblymember Alexandra Macedo was among the lawmakers who signed the letter calling for an investigation and answers about what happens moving forward. She represents the counties of Fresno, Kings and Tulare.

"The High-Speed Rail Authority has spent a lot of taxpayer dollars on their fancy models and their very aggressive public relations campaign," Macedo said on NBCLA's NewsConference. "I'm really hoping we can get through to the voters and Donald Trump can help me on this. The truth is after 17 years and $13.7 billion, no tracks have been laid."

Specifically, the letter questions why, according to the inspector general report, a risk analysis was not completed for the Merced-to-Bakersfield segment to determine the project's feasibility.

NBCLA has reached out to the rail authority for a response.

In January, Gov. Gavin Newsom visited a location just outside Bakersfield to break ground on a new phase of the project, track-laying and "substantial completion" of a 22-mile stretch of rail line. Newsom expressed reservations about the project as he took office, but has been supportive once federal money was provided by the Biden Administration.

"No state in America is closer to launching high-speed rail than California – and today, we just took a massive step forward," Newsome said. "We’re moving into the track-laying phase, completing structures for key segments, and laying the groundwork for a high-speed rail network.

"The future of transportation is being realized right here in the Central Valley with thousands of good paying jobs already created and 171 miles being worked on. As only California can, we’re building America’s biggest infrastructure project."

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