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The Trump administration announced a comprehensive review of California’s high-speed rail project on Thursday. The move comes as the megaproject has faced significant challenges, including cost insufficiencies and delays, since its 2015 groundbreaking.
The Federal Railroad Administration (FRA) will conduct a compliance and performance review, focusing on whether the project has adhered to its grant agreements and whether federal funding should continue.
An artist rendering of the California High-Speed Rail system. Image: California High-Speed Rail Authority
Background and Cost Projections
The high-speed rail was estimated to cost $33 billion and be operational by 2020. Voters approved $9.95 billion in bonds to support the project in 2008. However, according to the California High-Speed Rail Authority (HRA), only 119 miles of the planned 776-mile track have “active” construction.
Current estimates suggest the project will cost between $89 billion and $128 billion to complete, far exceeding the original estimates.
Last year, HSR authorities said they were concentrating on constructing the 171-mile line from Merced to Bakersfield in California’s Central Valley.
However, a California inspector general report highlighted that the project is unlikely to meet its target of transporting passengers by 2033. Additionally, the Central Valley segment faces a $6.5 billion funding shortfall.
An artist rendering of a California High-Speed Rail station in Fresno. Image: California High-Speed Rail Authority
Review Adds Uncertainty to Project Direction
President Trump canceled nearly $1 billion in funding during his first term by terminating a federal agreement with California. Conversely, the Biden administration allocated $3 billion to the project in 2023.
Transportation Secretary Sean Duffy emphasized the need for scrutiny, stating, “For too long, taxpayers have subsidized the massively over-budget and delayed California High-Speed Rail project.” He added that if the project fails to meet its commitments, the funds could be redirected to other infrastructure projects.
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