Trump admin cuts $4 billion from California high-speed rail venture

California’s embattled high-speed rail venture suffered a significant setback after Transportation Secretary Sean Duffy introduced the termination of $4 billion in unspent federal funding by the Federal Railroad Administration (FRA).

Citing 16 years of failure, no accomplished high-speed monitor, and escalating prices, Duffy declared the venture, dubbed the “prepare to nowhere,” a mismanaged and over-budget “boondoggle.”

“That is California’s fault. Governor Newsom and the complicit Democrats have enabled this waste for years. Federal {dollars} are usually not a clean examine – they arrive with a promise to ship outcomes,” Duffy stated in a press release. 

The announcement adopted months of scrutiny after a complete compliance evaluation, plus failed makes an attempt by the California Excessive-Velocity Rail Authority (CHSRA) to deal with critical venture deficiencies. 

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“After over a decade of failures, CHSRA’s mismanagement and incompetence has confirmed it can not construct its prepare to nowhere on time or on funds. It’s time for this boondoggle to die. President Trump and I’ll at all times struggle to make sure your tax {dollars} solely go to initiatives that accomplish nice, large, stunning issues.” 

– Transportation Secretary Sean Duffy 

The evaluation discovered that zero miles of high-speed monitor have been laid since floor was damaged 10 years in the past, and the associated fee continues to balloon.

President Donald Trump, echoing Duffy’s sentiment, additionally referred to the venture as a “boondoggle.” 

“To the Regulation abiding, Tax paying, Hardworking Residents of the US of America, I’m thrilled to announce that I’ve formally freed you from funding California’s disastrously overpriced, “HIGH SPEED TRAIN TO NOWHERE,” Trump wrote in a submit on his social media platform, Fact Social. 

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“This boondoggle, led by the incompetent Governor of California, Gavin Newscum, has value Taxpayers Lots of of Billions of {Dollars}, and we now have acquired NOTHING in return besides Value Overruns. The Railroad we had been promised nonetheless doesn’t exist, and by no means will,” Trump continued.

“This venture was Severely Overpriced, Overregulated, and NEVER DELIVERED. Due to Transportation Secretary Sean Duffy, not a SINGLE penny in Federal {Dollars} will go in the direction of this Newscum SCAM ever once more. This was an ill-conceived and pointless venture, and a complete waste of Taxpayer cash — However no extra!”

Rep. Kevin Kiley, R-Calif., creator of H.R. 213, laws to ban additional federal funding for Excessive-Velocity Rail, applauded the transfer.

“California Excessive-Velocity Rail is the worst public infrastructure catastrophe in U.S. historical past,” Kiley stated. 

“A venture that was presupposed to be completed 5 years in the past at a value of $33 billion is now projected to take till the top of the century at a price of $130 billion. I’m grateful that President Trump and Secretary Duffy are sparing our taxpayers by slicing off federal funding. The state should now comply with swimsuit, wind this disastrous venture down, and spend our transportation {dollars} the place they’re wanted: our roads.”

California Governor Gavin Newsom took a jab at Duffy on X, saying he’d take recommendation from others over the transportation secretary.

“Received’t be taking recommendation from the man who can’t preserve planes within the sky,” Newsom wrote.

Newsom’s workplace additionally launched a press release in response to the “Trump administration illegally terminating federal grant agreements funding California high-speed rail.”

“Trump needs handy China the longer term and abandon the Central Valley. We gained’t let him. With initiatives just like the Texas high-speed rail failing to take off, we’re miles forward of others,” Newsom wrote. 

“We’re now within the track-laying part and constructing America’s solely high-speed rail. California is placing all choices on the desk to struggle this unlawful motion,” he continued. 

The Division of Transportation (DOT) added that it might additionally pursue restoration of beforehand disbursed funds and potential authorized motion. 

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The Elkhorn grade separation beneath development throughout a high-speed rail venture in Fresno County, California, on Monday, April, 18, 2022.  (David Paul Morris/Bloomberg by way of Getty Photographs / Getty Photographs)

Along with canceling $4 billion in unspent federal funds to CHSRA, Duffy directed FRA to evaluation different obligated and unobligated grants associated to the CHSRA venture.

The 300-page damning report, launched again in June, examined the venture and located delays, missed deadlines, mismanagement, waste, skyrocketing prices, funds shortfalls and overrepresentation of projected ridership. 

Different key findings revealed that the venture confronted ongoing — and sure growing — contractor value overruns as a result of delays and that the CHSRA did not finalize contracts for its high-speed trainsets on time. 

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The venture was initially touted as a two-phase visionary system connecting Los Angeles to San Francisco, and later north to Sacramento, and south to San Diego.

The report states that regardless of the cash already plowed into the venture, there’s a $7 billion funding hole to finish a subset of the primary part within the Central Valley from Merced to Bakersfield, often known as the Early Working Section (EOS).

For the reason that venture’s inception, it has been dramatically diminished from an 800-mile phase to a 171-mile phase. 

Fox Information Digital’s Michael Dorgan contributed to this report.