BAKERSFIELD, Calif. (KERO) — The U.S. Department of Transportation has withdrawn approximately $175 million in federal funding from California's high-speed rail project, dealing a major blow to the state's two-decade effort to build a bullet train system.
Transportation Secretary Sean Duffy announced Tuesday that the Federal Railroad Administration officially pulled funding from four California rail projects, calling them "fantasy projects" and criticizing the lack of progress on the ambitious transportation initiative.
The funding cuts target several key components of the high-speed rail system. The withdrawn funds include nearly $90 million for the Le Grand Overcrossing on the Merced Extension, $7.5 million for grade separations in southern San Jose, nearly $25 million for final design work on the Transbay Downtown Extension, and over $54 million for plans for a Madera high-speed rail station.
Duffy criticized the state's progress on the project, noting that not a single mile of high-speed track has been completed despite years of planning and billions in investment.
"The waste ends here. As of today, the American people are done investing in California's failed experiment. Instead, my Department will focus on making travel great again by investing in well-managed projects that can make projects like high-speed rail a reality," Duffy said.
The funding withdrawal represents the latest development in an ongoing political battle between the Trump administration and California over the rail project.
A spokesperson for the California High Speed Rail Authority defended the project's progress and pushed back against the federal criticism.
"Just this week, the Authority is advancing approval to purchase track and system components, moving us towards installing high-speed rail along the Central Valley corridor within the next year. While opponents are recycling tired political attacks, California is building the future of American transportation," the spokesperson said.
The California high-speed rail project has already cost an estimated $15 billion, with a projected final price tag of $135 billion. This marks the second time in recent months that federal funding has been pulled from the project. In July, the FRA canceled an additional $4 billion in funding, citing a lengthy report showing serious delays and concerns with project oversight.
Ian Choudri, CEO of the California High-Speed Rail Authority, acknowledged the project faces challenges but maintained that work will continue. Speaking alongside state Democratic leaders on Monday, Choudri said the project has reached a crossroads requiring important decisions about its future direction.
"We can choose to let the challenges of the past define the program's future, or we can meet the moment by supporting high-speed rail with right tools and partnerships to make this one as kind of a meaningful progress we all want to see," Choudri said.
Duffy has ordered a broader review of all federal grants tied to the California High-Speed Rail Authority, raising questions about what additional funding could be at risk as the project moves forward.
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