The Federal Railroad Administration (FRA) has withdrawn funding worth more than USD 175 million from four projects linked to California’s high-speed rail programme. The announcement, made by U.S. Transportation Secretary Sean P. Duffy, follows the Department’s recent termination of a larger USD 4 billion grant to the California High-Speed Rail Authority (CHSRA), citing concerns about cost overruns and project delays.
Funding withdrawn from four projects
The FRA’s decision affects four projects considered to be related to California’s high-speed rail programme:
- Le Grand Overcrossing Project on the Merced Extension (CHSRA) – USD 89.6 million
- Southern San Jose Grade Separations (Monterey Rd) (City of San Jose) – USD 7.5 million
- DTX Final Design for Track and Rail Systems Project (Transbay Joint Powers Authority) – USD 24.7 million
- Madera High-Speed Rail Station Project (California Department of Transportation) – USD 54.5 million
In total, the projects accounted for around USD 175 million in federal funds. Secretary Duffy said the withdrawal reflects the Department’s commitment to redirecting funds to what he described as “well-managed projects” that could deliver tangible results.
Criticism of California’s High-Speed Rail programme
California’s high-speed rail programme has been controversial since its inception. Launched with the aim of delivering a high-speed link between San Francisco and Los Angeles, the project has faced repeated delays, cost escalations and scope changes.
To date, roughly USD 15 billion has been spent, while current estimates put the total cost at around USD 135 billion. Secretary Duffy strongly criticised the project, saying:
“In twenty years, California has not been able to lay a single track of high-speed rail. Joe Biden and Pete Buttigieg didn’t care about these failures and dumped hundreds of millions of dollars into the state’s wish list of related fantasy projects. The waste ends here. As of today, the American people are done investing in California’s failed experiment.”
Previous FRA actions
The FRA’s withdrawal of the four projects follows its July 2025 decision to cancel USD 4 billion in grants to CHSRA after issuing a 315-page report highlighting concerns about the project. Among the issues cited was the Authority’s inability to complete the Merced–Bakersfield section by 2033, as originally planned.
The Department of Transportation has also instructed the FRA to conduct a broader review of all obligated grants related to California’s high-speed rail development.
Ongoing construction efforts
Despite the loss of federal support, construction of the California high-speed rail line continues. Around 171 miles of the route between Merced and Bakersfield are currently in design and construction. According to CHSRA, nearly 70 miles of guideway have already been completed, along with 55 structures, with another 29 under construction across Madera, Fresno, Kings and Tulare counties.
The project has also generated significant employment, with more than 15,600 jobs created since construction began—most filled by Central Valley residents. On average, around 1,700 workers are active at construction sites each day.
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