Trump Pulls Plug on California Bullet Train Project, Cuts $4 Billion/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump has rescinded $4 billion in federal funding from California’s high-speed rail project. The decision deals a major blow to the state’s long-delayed bullet train initiative, which now faces even more uncertainty. Governor Gavin Newsom has vowed to fight the move, calling it illegal and politically motivated.
High-Speed Rail Defunded: Quick Looks
- $4 Billion Pulled: Trump administration revokes federal funds for California’s bullet train.
- “Train to Nowhere”: Trump criticizes the project as overpriced and ineffective.
- State vs. Federal Feud: Governor Newsom vows legal and political pushback.
- Infrastructure Already Built: Over 50 structures constructed along Central Valley segment.
- Private Investment Needed: State seeks investors amid skyrocketing $100B+ costs.
- Funding Strategy at Risk: Cap-and-trade program extension becomes more urgent.
- Report Due This Summer: Rail authority to present revised budget and timeline.
- Legal Tensions: California officials claim funding revocation is “illegal.”
- Ongoing Political Clash: Decision part of broader feud between Trump and California Democrats.
Trump Pulls Plug on California Bullet Train Project, Cuts $4 Billion
Deep Look
SACRAMENTO, Calif. (AP) — The Trump administration on Wednesday withdrew $4 billion in federal funding for California’s high-speed rail project, heightening doubts about the long-awaited bullet train meant to link San Francisco and Los Angeles.
The U.S. Department of Transportation said the funding revocation is final, citing cost overruns and missed deadlines. Just under one-quarter of the project’s funding had been federal—critical dollars that now disappear as California tries to build what would be the nation’s first major high-speed rail network.
President Donald Trump blasted the initiative as a colossal waste. “The Railroad we were promised still does not exist, and never will,” he posted on Truth Social. “This project was Severely Overpriced, Overregulated, and NEVER DELIVERED.”
Political Undercurrents and Escalation
The funding cut continues a pattern of tensions between Trump and California, one of his most vocal critics. His administration has already blocked environmental regulations, investigated universities, and challenged transgender rights in the state.
California Governor Gavin Newsom immediately vowed to fight the move. “Trump wants to hand China the future and abandon the Central Valley. We won’t let him,” he declared in a statement. Newsom also said the state is keeping “all options on the table,” including legal action.
The California High-Speed Rail Authority denounced the decision as unlawful. CEO Ian Choudri emphasized that the federal grants were tied to legal agreements, which the state has honored. “Canceling these grants without cause isn’t just wrong — it’s illegal,” Choudri said. “We’ve built over 50 major structures and passed every federal audit.”
The Rail Plan’s Rocky Path
Originally approved by voters in 2008, the bullet train was meant to be a transformative transportation project. However, delays and rising costs have plagued the effort. Now estimated at more than $100 billion, the full route from Los Angeles to San Francisco has been scaled back to a 119-mile Central Valley section linking Merced and Bakersfield, now scheduled for completion in 2033.
Still, even that timeline may be optimistic without significant new investment. The authority is now aggressively courting private partners, asking interested investors to submit proposals by month’s end.
Critics, including acting Federal Railroad Administrator Drew Feeley, call the project “a story of broken promises.” In a recent report, Feeley accused the state of lacking a realistic plan to finish even the Central Valley section.
Some Democrats have joined the criticism. Assemblymember Rebecca Bauer-Kahan noted during a budget hearing earlier this year that her constituents “overwhelmingly believe” the project’s spending has been mismanaged.
Cap-and-Trade Extension: A Crucial Lifeline
A major financial pillar of the rail effort is California’s cap-and-trade program. The initiative limits greenhouse gas emissions and allows polluters to purchase allowances, the proceeds of which support climate-related projects.
Roughly 25% of this Greenhouse Gas Reduction Fund—about $1 billion annually—has gone to high-speed rail. In May, Newsom proposed securing a guaranteed $1 billion yearly through 2045. That plan remains under negotiation in the state legislature.
Without federal support, the state must rely more heavily on this program, private financing, and future bond measures to keep the project alive.
Looking Ahead
Despite mounting challenges, California officials remain committed to the bullet train. A new report from the High-Speed Rail Authority is due to lawmakers this summer, outlining revised timelines and cost projections.
Whether that plan will restore faith in the project—or signal further unraveling—remains to be seen.
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