The United States Secretary of Transportation, Sean Duffy, has announced that he will instruct the Federal Railroad Administration (FRA) to conduct a compliance review of California’s long-contested high-speed rail project’s funding and determine if the project is worth continuing to receive federal investment.
Duffy stated during a press conference on February 20 that President Trump had previously raised concerns about the project, referring to mismanagement, which Duffy acknowledged.
The high-speed rail project in California has reportedly cost nearly $16 billion over 16 years with little progress to show for it. The construction timeline has been repeatedly extended, and the budget has significantly increased – more than doubling since the project’s launch in 2008. A report from the California Rail Authority indicates that from July 2006 to June 2024, $13 billion has been spent on the project, with the latest estimated cost to complete reaching $130 billion.
According to a report by the State Rail Authority’s audit on February 3, the Bakersfield to Merced high-speed rail segment in the Central Valley region is facing further delays and a $6.5 billion funding gap. This segment is part of the planned Los Angeles to San Francisco high-speed rail line spanning 400 miles.
Duffy mentioned that he will direct the FRA to focus on reviewing the $4 billion promised by the Biden administration for funding two construction projects for the Bakersfield to Merced segment. Besides examining the use of federal funds, they will also evaluate if California has complied with agreements with the federal government. This scrutiny aims to determine if billions of taxpayers’ dollars should continue to be invested in the project.
“We want to ensure that California taxpayers understand that even though they may be excited about this project, it is unlikely to materialize,” stated Duffy. “There is no completion timeline for the high-speed rail from Los Angeles to San Francisco.”
Duffy said that if California wishes to continue funding this rail project, they are free to do so. However, the Trump administration will consider whether it is worth further investment.
While announcing the review, Duffy also mentioned that potential fraud and waste issues are California’s concern, and audits should be led by Governor Gavin Newsom. Duffy stated, “I cannot make decisions for the great state of California, but we must be accountable for taxpayers’ funds from the federal government.”
He also pointed out that other high-speed rail projects submitted to the FRA have “excellent timelines” and “excellent budgets” with a chance of actual completion – for example, the privately funded Brightline West high-speed rail connecting Los Angeles and Las Vegas, expected to be completed in a few years. Duffy added, “That appears to be a project worth investing in.”
Jeff Zhang, a 24-year-old, told Epoch Times, “The California high-speed rail is a long-term project that should not be hindered by short-term profit-oriented oligarchs.” He believes that delays are just one “cost” in the process of building the nation’s first bullet train project.
Eli Lipmann, the executive director of transportation advocacy group Move LA, acknowledged to Epoch Times, “Yes, the project is behind schedule.” However, he believes that the project creates job opportunities and will play a crucial role in future infrastructure. He is concerned that halting high-speed rail funding could jeopardize other infrastructure projects.
“L.A. County already has nearly $1.2 billion allocated – signed, stamped and delivered – we need to ensure that these allocations come through, from improving public transportation connections to reducing congestion, to projects like the Purple Line extension; I took the Purple Line to get here today,” stated Lipmann. A recent Emerson poll showed that 55% of Californians still support the project.
Several protesters at the scene expressed that California lags behind other developed countries in public transportation and infrastructure.
“It’s a problem,” one protester expressed dissatisfaction with delays and escalating costs but also mentioned, “I still believe this project needs to be completed. We have invested so much… not only for California but for the whole country.”
Congressman Doug LaMalfa had a differing perspective. He hinted during the press conference that the uncontrollable costs of the rail should be redirected towards agriculture, water infrastructure, and other “things the people need.” LaMalfa mentioned that although the federal government has “scattered” $4 billion, they could never meet the $110 billion needed to complete the project.
Congressman Kevin Kiley told the Epoch Times that he is more focused on preventing future government takeover of the project. “Once federal funding is cut off, we can terminate this project and focus on things that can truly improve people’s lives,” he stated.
California Republican lawmakers also targeted the state budget, proposing that California should redirect the $1 billion spent annually on the rail project towards wildfire prevention and water resource storage. Assemblymember Vince Fong previously introduced such a bill while serving as a state assemblyman. In January, Assemblymember Alexandra Macedo reintroduced the bill.
“Eight instances of structural mismanagement have been outlined by the auditor,” Fong told Epoch Times. “So we have the data we need. It’s just a matter of whether the Governor and his state legislative apparatus – the ruling party – have the political will to stop this project and allocate funds to other areas.”
Former Congresswoman Michelle Steel believes that comparing the project to successful high-speed rail projects in countries like Spain, France, China, and Japan is inappropriate. “I grew up in Japan. Japan succeeded because you can get off the highway system and then transfer to the train to get into the city. This project costs $128 billion or $140 billion, without benefits, we don’t need to waste taxpayers’ money.”
Mark Joffe, a visiting scholar at the California Policy Center and a long-standing critic of the California high-speed rail, highlighted unique business environment challenges in California. “Many other countries built high-speed rail much earlier. China has constructed a substantial amount of high-speed rail this year, but they don’t have the private property protections and labor rules like we do here,” he said. “I don’t think anyone would want to use China’s property expropriation standards or labor standards.”
California Senator Shannon Grove stated that the California high-speed rail project has enjoyed many special privileges and fast-tracks, including exemption from the California Environmental Quality Act (CEQA) review. “The Central Valley has been proven to be subsiding, and they’re constructing this behemoth on that sinking ground, bearing the weight of so much concrete and railway structures,” she told Epoch Times.
Regarding a part of the Central Valley section, she said, “You can walk around here in 10 minutes, but they spent $13 billion. It’s absolutely absurd.”
After the press conference, the California Rail Authority posted on the social platform X, saying, “We welcome this investigation and look forward to collaborating with federal agencies.” “California High-Speed Rail has undergone over 100 audits, every dollar has been accounted for, and progress is real – 50 structures have been built, creating 14,600 jobs, and 171 miles are under construction.”