The Trump administration has withdrawn an additional $175 million in federal funding for California’s high-speed rail project, deepening the challenges for the state’s long-delayed plan to connect Los Angeles and San Francisco with a three-hour train ride.
The U.S. transportation department announced the cancellation, which was meant to support grade separation, station construction in Madera, and related design work. This follows the earlier revocation of $4 billion in federal grants for the project.
California has already filed lawsuits to block the withdrawals, arguing the decisions are unlawful. State lawmakers recently suggested that, without federal support, the project may require an additional $1 billion per year in state funding to move forward.
The high-speed rail project, approved by voters in 2008 with an initial $10 billion bond issue, has completed 70 miles of guideway and over 50 major structures. However, spiraling costs and repeated delays have pushed the estimated completion date for the Central Valley portion to 2033, with overall costs projected to rise as high as $128 billion.
The funding dispute also reflects the ongoing political tension between Donald Trump and California governor Gavin Newsom, who has accused the administration of targeting the state for political reasons.