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.

“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.”

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.

“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.