METRO Magazine Logo
MenuMENU
SearchSEARCH

FRA Report Finds California High-Speed Rail Project in Default of Federal Grant Terms

U.S. DOT cites delays, cost overruns, and funding shortfalls in 310-page review; CHSRA has 37 days to respond before possible grant termination

FRA Report Finds California High-Speed Rail Project in Default of Federal Grant Terms

In a letter to CHSRA CEO Ian Choudri, the FRA outlined that the agency has 37 days to formally respond to the findings, which could lead to further federal action, including potential grant termination.

Photo: CHSRA

3 min to read


The U.S. Department of Transportation released a comprehensive compliance review by the Federal Railroad Administration (FRA) concluding that the California High-Speed Rail Authority (CHSRA) is in default of the terms associated with two major federal grant agreements totaling approximately $4 billion. 

The report outlines nine key findings, citing missed deadlines, funding gaps, and overly optimistic ridership projections among the project’s ongoing challenges.

Ad Loading...

Background on FRA’s Report

The 310-page report stems from a detailed investigation by Transportation Secretary Sean P. Duffy in February 2025. 

The review focused on two cooperative agreements: a $929 million award issued in 2010 and a $3.07 billion grant finalized in 2024. In a letter to CHSRA CEO Ian Choudri, the FRA outlined that the agency has 37 days to formally respond to the findings, which could lead to further federal action, including potential grant termination.

Among the FRA’s central findings:

  • The CHSRA is facing a $7 billion funding gap for completing the Early Operating Segment (EOS), and it has “no credible plan to close it.”

  • The agency has missed key deadlines, including finalizing its rolling stock procurement.

  • It lacks adequate budget contingency for anticipated contractor claims and change orders.

  • The project's current scope is unlikely to meet 2033 completion commitments laid out in the federal agreements.

  • Ridership projections have been significantly overrepresented, and the project now risks connecting endpoints far removed from the proposed initial metropolitan links.

“Given CHSRA’s past performance and risk profile, there is no viable path to completing the EOS by 2033,” the FRA report stated. It also flags the agency’s dependence on uncertain non-federal funding sources and limited capacity to manage large-scale infrastructure.

Ad Loading...

Transportation Secretary Duffy emphasized fiscal responsibility: “This report makes clear that CHSRA is far from delivering the vision it promised to taxpayers. If it cannot meet its commitments, it may be time to redirect these funds to projects better positioned to deliver meaningful high-speed rail infrastructure.”

About California’s High-Speed Rail Project

The California High-Speed Rail project, envisioned as the nation’s first true high-speed rail corridor, has faced mounting scrutiny amid rising construction costs, scope reductions, and shifting timelines in recent years. 

The FRA said that despite receiving approximately $6.9 billion in federal funds over 15 years, the project has yet to complete any high-speed segments or deliver full-service rail operations.

As METRO Magazine has previously reported, CHSRA has defended its progress in advancing foundational infrastructure in California’s Central Valley. Construction activity has continued amid ongoing challenges with third-party coordination, land acquisition, and state-level funding certainty. The FRA’s findings now cast further uncertainty over the timeline and scope of what was once billed as a transformative national infrastructure initiative.

The CHSRA is expected to issue a formal response in the coming weeks. The FRA’s final decision could have broad implications for the future of high-speed rail development in the U.S.

More Rail

Railby StaffFebruary 2, 2026

Chicago Region Transit Ridership Grows in 2025

The region’s fixed-route system finished out the year with a total of 373.5 million rides. Adding 12.3 million rides over 2024 represents an increase that is equal to the annual transit ridership of Kansas City.

Read More →
Managementby StaffJanuary 29, 2026

Valley Metro Sees Strong Ridership Growth in 2025

The agency ranked top five among mid-sized U.S. transit systems, defined as agencies with 15 million to 50 million annual trips.

Read More →
Busby StaffJanuary 29, 2026

Subway Customer Satisfaction Reaches Record High, New York MTA Says

The subway system saw increases across all key metrics, with 62% of subway riders reporting they feel satisfied with the system overall.

Read More →
Ad Loading...
Managementby StaffJanuary 27, 2026

Keolis Retains Virginia Railway Express Contract

The new contract for Keolis and VRE will commence in July 2026, with the potential to expand to 15 years.

Read More →
Busby StaffJanuary 27, 2026

California's OCTA Advances 2026 Initiatives Centered on Balance and Sustainability

The priorities are outlined in the 2026 Board and CEO Initiatives and Action Plan, which serves as a roadmap to guide the agency’s work throughout the year and ensure continued progress and accountability on voter-approved transportation investments and essential mobility services.

Read More →
Railby Staff and News ReportsJanuary 26, 2026

People Movement: Virginia's DRPT Names New Director and More

In this edition, we cover recent appointments and announcements at HDR, MCTS, and more, showcasing the individuals helping to shape the future of transportation.

Read More →
Ad Loading...
ManagementJanuary 23, 2026

Seattle Sound Transit Sets Launch Date for Crosslake Connection

This final component of the 2 Line will cross Lake Washington and connect with the 1 Line at International District/Chinatown Station, creating a fully integrated regional light rail system.

Read More →
A blue and white graphic with a map of the proposed study area for the Sepulveda Transit Corridor and text reading "LA Metro Approves Underground Rail for Sepulveda Transit Corridor."
RailJanuary 23, 2026

LA Metro Approves Underground Rail for Sepulveda Transit Corridor

The agency’s selection aims to slash travel times from the San Fernando Valley to the Westside to under 20 minutes.

Read More →
TechnologyJanuary 21, 2026

Florida's Tri-Rail Taps Siemens Mobility for Modern Locomotive Procurement

Expected to enter service in 2029, these locomotives support the agency’s commitment to offer reliable and efficient rail transportation across South Florida.

Read More →
Ad Loading...
Rendering of an Austin Light Rail station.
RailJanuary 20, 2026

Austin Transit Partnership Advances Federal Funding Process for Light Rail Project

See how the agency’s transit project completed a Final Environmental Impact Statement within the federal two-year guideline.

Read More →