A full-scale mock-up of a high-speed train, is displayed at the Capitol in Sacramento, Calif, on Feb. 26, 2025. (AP Photo)


February 21, 2025 Tags:


The California high-speed rail project is under renewed federal scrutiny, with transportation officials announcing an investigation that could lead to the withdrawal of nearly $4 billion in federal funding. The move raises fresh concerns over the future of the long-delayed project.

A Project Plagued by Delays

Initially approved by voters in 2008, the high-speed rail was envisioned to connect San Francisco and Los Angeles in under three hours. The project was expected to cost $33 billion and be completed by 2020. However, cost overruns and funding challenges have pushed the estimated price to $106 billion, with completion now projected within the next two decades—if funding is secured.

Currently, efforts are concentrated on a 171-mile segment between Bakersfield and Merced, which is expected to be operational by 2033.

Federal Funds at Risk

U.S. Transportation Secretary Sean Duffy stated that his office is reviewing whether the California High-Speed Rail Authority has upheld its commitments tied to federal funding. If violations are found, the funds may be reallocated to other infrastructure projects across the country.

This is not the first time federal funding has been threatened. In 2019, nearly $1 billion in funds was canceled under the Trump administration but later restored under President Biden. In December 2023, an additional $3.3 billion was allocated to the project. Losing federal support now could severely impact future progress, as the rail authority’s business plan relies on securing up to $8 billion from federal sources.

Defending the Project

California High-Speed Rail Authority CEO Ian Choudri welcomed the investigation, emphasizing transparency and progress. He noted that previous audits have accounted for every dollar spent and that the project has already created nearly 15,000 jobs. More than 50 major structures have been completed.

Political Backlash

Critics of the project, particularly Republican lawmakers, continue to highlight its soaring costs. Rep. Kevin Kiley, who has long opposed the rail initiative, called it “the worst public infrastructure failure in U.S. history.” He has introduced legislation to block further federal funding for the project.

During a press conference announcing the investigation, Kiley and Duffy were met with protests. Demonstrators chanted in support of the rail project, holding signs urging its continuation.

Supporters Call for Bold Action

Despite the criticism, many transit advocates remain hopeful. Eli Lipmen, executive director of Move LA, dismissed the federal probe as politically motivated.

Meanwhile, leaders from the Transportation Trades Department coalition, representing national rail unions, urged the U.S. to invest in modern transportation. They highlighted the need for leadership to bring high-speed rail to the country, emphasizing that other nations have already embraced this technology.

With federal funding at stake, the fate of California’s high-speed rail remains uncertain. The outcome of the investigation could determine whether the ambitious project moves forward or faces further setbacks.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

World Economic Forum Chairman Klaus Schwab Retires After 50 Years of Global Leadership

Klaus Schwab, the 87-year-old founder of the World Economic Forum (WEF), has stepped down as chairman. After leading the influential....

China Returns $55m Boeing Jet as Trump Tariffs Impact Trade

A Boeing 737 MAX originally bound for China’s Xiamen Airlines made an unexpected return to the US on Sunday. The....

China-U.S. Tariff War Rattles Trade Ties and Businesses

Chinese exporters are on edge as a sweeping tariff war with the United States threatens long-standing trade relationships. What started....

Trump’s Commerce Chief Says, Electronics Tariff Exemption Is Temporary

The U.S. government’s decision to temporarily exempt electronics like smartphones and laptops from tariffs may not offer lasting relief. The....

Hudson’s Bay Insider Bid Protocol Raises Sale Speculation

Hudson’s Bay Company (HBC) has taken a significant step in its ongoing creditor protection process. A new internal protocol shared....

Prada to Acquire Rival Fashion House Versace in €1.25 Billion Deal

In a major move reshaping the global luxury fashion landscape, Prada Group has officially announced its acquisition of Italian fashion....

Biggest Drop in Gas Prices Across Canada: What’s Behind the Relief?

Canadians have been noticing a welcome change at the gas pumps. Over the past few weeks, fuel prices have fallen....

Trump Pauses Reciprocal Tariff for 90 Days, Hits China Harder with 125%

President Donald Trump has announced a temporary relief in his sweeping tariff policy, pausing higher levies for 90 days on....

Wall Street Fears Another ‘Black Monday’ Amid Trump’s Tariff Shock

U.S. stock futures plunged Sunday evening, triggering fears of a repeat of Black Monday, as markets reacted sharply to President....

In Canadian Business This Week: Key Events to Watch

As Canada steps into a new business week, several developments are set to shape the national economic narrative. From politics....

Ontario Businesses Fined for Hiring 700 Unauthorized Foreign Workers

A major federal investigation has resulted in significant penalties for three Ontario-based businesses that were found guilty of employing hundreds....

Markets Brace for Turbulence and Recession Fears as Liberation Day Approaches

Investors are on edge as Liberation Day, set for April 2, nears. As the year's first quarter ends on a....