The Trump administration has announced an investigation into California’s high-speed rail project, citing concerns over cost overruns and delays. With a potential withdrawal of $4 billion in federal funding, the probe could further jeopardise a project already facing significant financial and logistical hurdles.
Federal Inquiry Into Project Commitments
The California High-Speed Rail project was originally approved in 2008 with a $10 billion bond and an estimated $33 billion cost, designed to connect San Francisco and Los Angeles in under three hours. However, according to federal officials, the project has struggled with delays and escalating costs, now estimated at $106 billion.
On Thursday, Transportation Secretary Sean Duffy stated that his department would assess whether the California High-Speed Rail Authority (CHSRA) had met its federal funding obligations.
“If not, I will have to consider whether that money could be given to deserving infrastructure projects elsewhere in the United States,” he said at a news conference in Los Angeles.
The announcement marks the latest challenge to the project, which saw $1 billion in federal funding cancelled during Trump’s first term before being reinstated under President Joe Biden. The Biden administration further allocated $3.3 billion in December 2023 to support the project’s completion.
According to CHSRA Chief Executive Ian Choudri, the project remains on track. He affirmed that all federal and state audits have accounted for every dollar spent and highlighted the 15,000 jobs created. “We stand by the progress and impact of this project,” Choudri stated.
Political and Public Reactions
The investigation has drawn mixed responses. Republican lawmakers have been vocal critics of the rail project, with Representative Kevin Kiley calling it “the worst public infrastructure failure in U.S. history.” Kiley, who has introduced a bill to block further federal funding, insisted, “There is no plausible scenario where the cost to taxpayers can be justified.”
At Los Angeles’ Union Station, the announcement was met with protests from around 30 demonstrators, who chanted “build the rail!” and held signs criticising the decision. Eli Lipmen, director of Move LA, dismissed the inquiry as politically motivated, telling KABC-TV, “This is a sham investigation.”
Labour unions have also defended the project. Greg Regan and Shari Semelsberger, representatives of a national rail workers’ coalition, urged Trump to support high-speed rail, referencing his past comments on the lack of bullet trains in the U.S. “Building ambitious projects requires bold leadership,” they stated.
