METRO Magazine Logo
MenuMENU
SearchSEARCH

FRA Pulls More Funding from California High-Speed Rail Amid Progress and Dispute

USDOT cites failure to meet obligations, while California defends project progress and continues the track-laying phase.

July 17, 2025
Image of a construction site for the high-speed rail project in California with text reading, "California High-Speed Rail Project Faces Federal Funding Cut."

The Federal Railroad Administration has pulled $4 billion in funding from California’s high-speed rail project, citing delays, cost overruns, and unmet obligations.

Photo: California High-Speed Rail Authority / METRO

3 min to read


U.S. Transportation Secretary Sean P. Duffy recently announced the Federal Railroad Administration terminated approximately $4 billion in unspent federal funding for California’s High Speed Rail project.

According to a USDOT release, after 16 years and roughly $15 billion spent, “not one high-speed track has been laid by the California High-Speed Rail Authority (CHSRA).” The rail plan had a projected total cost of $135 billion.

Ad Loading...

“Federal dollars are not a blank check — they come with a promise to deliver results,” Duffy said. “After over a decade of failures, CHSRA’s mismanagement and incompetence have proven it cannot build its train to nowhere on time or on budget.”

The decision follows FRA’s compliance review, resulting in a 300-page report noting that, “CHSRA could not meet its binding obligations under the agreements it made to receive federal funding.”

According to the release, the CHSRA was given two opportunities to respond consistently with the grant agreements after the review. “Neither response addressed FRA’s significant concerns. CHSRA simply cannot meet its obligations under the grant agreement,” the USDOT release stated.

Track-Laying Begins as Federal Support Wavers

As the California governor’s office reported, the termination comes as the project enters the track laying phase, actively building across 171 miles, has built more than 50 major railway structures — including bridges, overpasses, and viaducts — and completed over 60 miles of guideway.

“With projects like the Texas high-speed rail failing to take off, we are miles ahead of others,” said California Governor Gavin Newsom in response to the termination. “We’re now in the track-laying phase and building America’s only high-speed rail. California is putting all options on the table to fight this illegal action.”

Ad Loading...

In January, Gov. Newsom joined CHSRA CEO Ian Choudri, local leaders, and workers outside Bakersfield to break ground on the railhead and allow the authority to begin laying track.

“[This] is one of the last steps in construction, occurring only after land acquisition, environmental clearances, and completion of supporting structures,” the release reported.

“Canceling these grants without cause isn’t just wrong — it’s illegal,” Choudri said. “These are legally binding agreements, and the authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025.

According to the governor’s office statement, the high-speed rail has marked “significant” progress, including:

  • The completion of environmental reviews spanning 463 miles from Los Angeles to the Bay Area.

  • Completion of Caltrain electrification.

  • Trainset selection underway.

  • Station and track construction on deck.

  • Continued work with partner rail systems to create a southwest regional high-speed rail network.

  • More than 15,000 jobs created.

Ad Loading...

“This is no time for Washington to walk away on America’s transportation future,” Choudri said.

Passenger service was expected in the coming years, between 2030 and 2033.

More Rail

Coastal railroad tracks run between a steep bluff and the Pacific Ocean in San Clemente, California, with rock barriers protecting portions of the shoreline.
Rail•by Elora Haynes•October 1, 2026

OCTA Declares Emergency to Protect Rail Corridor From Coastal Erosion

The California agency is accelerating shoreline protection and plans to place approximately 690,000 cubic yards of sand along the San Clemente coast to protect a key passenger and freight rail link.

Read More →
DRPA interns with program swag.
Management•by Alex Roman•October 1, 2026

More Than a Summer Job: Building the Next Generation of Transit Talent

The Delaware River Port Authority and PATCO have transformed their internship program into a hands-on professional development experience that introduces students to the breadth of transportation careers — and creates a pipeline for future employees.

Read More →
An Amtrak Airo trainset on the Cascades line
Rail•by Alex Roman•September 30, 2026

Airo Trains Make Their Amtrak Cascades Debut in the Pacific Northwest

Effective immediately, two cutting-edge Airo trainsets will join the Amtrak Cascades route, operating four daily trips between Vancouver, B.C., Seattle, Portland, and Eugene, Oregon, marking the first introduction of Airo trains into passenger service anywhere in the country.

Read More →
Ad Loading...
Rail•by Alex Roman•September 29, 2026

Florida's Brightline Announces Financial Restructuring

Brightline Florida says train operations will continue as normal as certain parent entities enter Chapter 11 and financial stakeholders provide $490 million in new long-term capital.

Read More →
Bus manufacturing image from ENC
Technology•by Alex Roman•September 25, 2026

ENC Lands MATA Contract and More in Biz Briefs

In this edition of Biz Briefs, we spotlight the latest developments shaping the future of mobility.

Read More →
Turning transit data into better decisions
Management•by Alex Roman•September 23, 2026

Strada360’s Steve Lassey on Turning Transit Data Into Better Decisions

From breaking down data silos to preparing for AI, Strada360 CEO Steve Lassey discusses how transit agencies can use technology to improve operations, customer information, and long-term decision-making.

Read More →
Ad Loading...
SEPTA Accelerate press conference
Management•by Staff and News Reports•September 23, 2026

SEPTA Details Accelerate Vision for Transit System

The plan outlines investments in trolley modernization, new Metro and Regional Rail vehicles, accessible stations, and more frequent bus and rail service.

Read More →
Two MBTA railcars in station.

FTA Ends Direct Oversight of MBTA Safety Actions

The federal agency closed its remaining special directive to the Massachusetts Department of Public Utilities following a safety review that began in 2022.

Read More →
A photo of an Amtrak train with a logo
Rail•by Staff and News Reports•September 17, 2026

Amtrak, CN Reach Agreements to Strengthen Passenger Rail Service, Safety

The agreement resolves a more than decade-long proceeding before the Surface Transportation Board concerning the terms and conditions for Amtrak services, such as the City of New Orleans, Illini/Saluki, and Wolverine.

Read More →
Ad Loading...
A New York MTA subway car with an open gangway
Rail•by Staff and News Reports•September 16, 2026

New York MTA Advances Final Contract for Second Avenue Subway Expansion

Contract Four is the largest in the Second Avenue Subway Phase 2 project and includes construction of station infrastructure, tracks, and signals for the subway expansion, MTA officials said. Work on Contract Four will begin in 2027.

Read More →