Duffy Pushes to Defund California High-Speed Rail Following Critical Federal Review
Transportation Secretary Sean Duffy warns of federal funding cuts to California's high-speed rail amid reports of cost overruns and financial woes.
The future of California’s embattled high-speed rail project is hanging in the balance after a blistering federal report brought its viability into serious question. Transportation Secretary Sean Duffy described the state’s decade-old effort as “a boondoggle,” underscoring mounting concerns over its spiraling costs, persistent delays, and an almost total lack of physical progress on the ground.
Duffy announced that the federal government is now considering pulling approximately $4 billion in already obligated funds unless the California High-Speed Rail Authority (CHSRA) can demonstrate the project’s feasibility within 37 days. This warning comes against the backdrop of federal contributions reaching nearly $6.9 billion, on top of $9 billion paid by Californians, with little to show in terms of operational high-speed service.
The newly released 300-page Federal Railroad Administration (FRA) report paints a dire picture, citing missed deadlines, mismanagement, fiscal waste, and perpetually inflated ridership forecasts. Despite enormous sums already spent, the review identified a $7 billion funding shortfall even for a much-reduced initial operating segment between Merced and Bakersfield. Once envisioned as an 800-mile system linking major California cities, the plan has been dramatically scaled back to just 171 miles in the Central Valley.
Highlighting the dramatic escalation in costs, the FRA now estimates the so-called Early Operating Segment (EOS) will require $35.4 to $37.8 billion, far surpassing CHSRA’s estimate of $28.8 billion. And for full completion of Phase 1, the projected price tag balloons to a staggering $106 to $128 billion. These overruns, according to the FRA, stem from ongoing contractor cost hikes, delayed contract finalizations for high-speed trainsets, and an overreliance on unpredictable funding streams such as cap-and-trade revenue.
According to Duffy, “This report exposes a cold, hard truth: CHSRA has no viable path to complete this project on time or on budget.” He added that if the Authority cannot meet its obligations, the federal funds would be redirected to other infrastructure projects more aligned with the administration’s goals. President Donald Trump echoed Duffy's criticisms, labeling the bullet train “the worst cost overrun I’ve ever seen.”
The FRA’s findings were unequivocal: there is no credible path for the CHSRA to complete the Central Valley segment by its revised 2033 deadline. The report further accused the Authority of failing to act in good faith regarding the project's budget and schedule commitments. If CHSRA does not provide a satisfactory response within the allotted window, it could trigger federal action to recover the $4 billion at stake.
Despite the federal criticism, Governor Gavin Newsom reaffirmed the state’s commitment to the project, pledging to dedicate $1 billion per year from California’s cap-and-trade program for the next two decades. However, with federal patience wearing thin and doubts about long-term funding sources, the fate of what was once billed as a transformative transportation initiative remains deeply uncertain.
The CHSRA has yet to publicly respond to the FRA’s findings. As the countdown begins, the high-stakes standoff could determine whether California’s high-speed rail vision will steam ahead—or come to a permanent halt.
