Trump administration pulls federal funding from California High-Speed Rail project

President Trump announced his administration is pulling $4 billion in funding from California’s long-delayed high-speed rail project. While the move is painful -- experts say it is not likely to derail the project.

Federal funding revoked

What we know:

California’s high-speed rail project is envisioned to span about 500 miles from San Francisco to Anaheim. Later links could extend the project to Sacramento and San Diego. First approved in 2008, it is now behind schedule and over budget. 

"It is definitely a hurdle for the project," said Professor Eric Eidlin with San Jose State University’s Mineta Transportation Institute. Professor Eidlin does not believe the cut in the federal one-time funding is a "death blow" for the project. "I think the project does eventually get completed. "It could take longer – it is going to require more commitments from the state," Prof. Eidlin said. 

In a statement on his social media platform "Truth Social" – President Trump said:

"I am thrilled to announce that I have officially freed you from funding California’s disastrously overpriced 'high speed train to nowhere.  The railroad we were promised still does not exist, and never will. This project was severely overpriced, overregulated and never delivered," President Trump said.   

Former Speaker Pelosi responds

What they're saying:

"This is a fight we will continue to fight. For them to say we are not going to do high speed rail is them saying we are rejecting the future," said Rep. Nancy Pelosi (D-San Francisco). Governor Newsom also pushed back on the decision, saying the high-speed rail project is actively building across 170-miles and has completed 60-miles of guideway so far. 

In a newsletter on Thursday, State Sen. Scott Wiener (D-San Francisco) said the initial Central Valley portion is on track to begin service in 2031. He said California would be pushing ahead with their plans despite the uncertainty from the federal level. 

The project has long been criticized for starting in the Central Valley rather than building initial links in the more populated Bay Area and Los Angeles sectors which could serve urban commuters today.  

"I think our attorney general will eventually be getting the money back. Because it is going to be pretty hard for them to defend taking back money appropriated and entered into a contract by Congress," said State Sen. Dave Cortese (D-San Jose). 

"Federal funding is both a blessing and a curse. It is always nice to get money from a higher level of government. But along with that comes with other requirements, political considerations – why should California get funding for this when other states don’t?," said Professor Eidlin. 

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$4B in federal funding for California's high-speed rail revoked

The Trump administration says it's slamming on the brakes when it comes to California's high-speed rail project, but Gov. Gavin Newsom is saying not so fast. 

CaliforniaDonald J. TrumpTransportationScott WienerNancy PelosiGavin NewsomNews