California’s dream of a high-speed rail just hit a brick wall. Transportation Secretary Sean Duffy pulled the plug on $4 billion in unspent federal funds for the beleaguered project, citing a scathing federal review that exposed 16 years of mismanagement, zero miles of high-speed track, and costs spiraling out of control.
The California High-Speed Rail Authority (CHSRA) has been promising a bullet train connecting Los Angeles to San Francisco since 2008, but the project is a textbook case of government waste and corruption.
Fox Business reported that a 300-page federal report from June 2025 laid bare delays, missed deadlines, and a budget that ballooned from $33 billion to a jaw-dropping $130 billion. Not a single inch of high-speed track has been laid in a decade of construction.
Originally pitched as an 800-mile marvel with extensions to Sacramento and San Diego, the project’s scope has shriveled to a 171-mile stretch from Merced to Bakersfield, dubbed the Early Operating Segment. Even that modest segment faces a $7 billion funding gap. It’s a far cry from the grand vision sold to voters.
The federal review didn’t pull punches, slamming CHSRA for waste, overblown ridership projections, and failure to finalize contracts for high-speed trainsets.
Construction, like the Avenue 15 and Elkhorn grade separations started in 2022, crawls along while contractor costs keep climbing. It’s a fiscal black hole with no end in sight.
“This is California’s fault,” Duffy declared, pinning blame on Governor Gavin Newsom and state Democrats for enabling the debacle. His words sting because they’re true—16 years and billions spent, yet commuters are no closer to zipping between cities. Federal dollars should fund results, not endless excuses.
President Trump, in classic form, called the project a “disastrously overpriced, ‘HIGH SPEED TRAIN TO NOWHERE.’” He’s not wrong—originally slated for completion in 2020, the rail is now projected to drag on until the end of the century. Taxpayers deserve better than a pipe dream that delivers nothing but bills.
Governor Newsom fired back, claiming, “We’re now in the track-laying phase and building America’s only high-speed rail.” Track-laying phase? After 16 years, that’s a weak boast, especially when no high-speed track exists and costs keep skyrocketing.
Newsom also took a swipe at Trump, saying he “wants to hand China the future and abandon the Central Valley.” It’s a tired deflection—comparing a failing project to international competition doesn’t erase CHSRA’s track record of incompetence. California’s governor can’t spin his way out of this mess.
“We won’t let him,” Newsom vowed, promising to fight the funding cut. But with a $7 billion shortfall just for the Merced-to-Bakersfield segment, his bravado feels like posturing. Legal battles may loom, but they’re unlikely to resurrect a project this far off the rails.
Rep. Kevin Kiley, R-Calif., called the rail “the worst public infrastructure disaster in U.S. history.” He’s right—a project that was supposed to cost $33 billion and be done five years ago now carries a $130 billion price tag with no finish line in sight. Kiley’s H.R. 213 bill to block further federal funding is a commonsense move to stop the bleeding.
“I am grateful that President Trump and Secretary Duffy are sparing our taxpayers,” Kiley said. His gratitude echoes the relief of Americans tired of footing the bill for California’s mismanaged ambitions. Roads, not rails to nowhere, should be the priority.
Duffy didn’t stop at canceling the $4 billion—he’s ordered a review of all CHSRA-related grants, hinting at clawing back previously disbursed funds. The Department of Transportation’s threat of legal action signals a no-nonsense approach. It’s about time someone held California accountable.
Trump’s blunt assessment—“This was an ill-conceived and unnecessary project”—cuts to the core of the issue. The high-speed rail was sold on lofty promises but delivered only red ink and broken timelines. Taxpayers shouldn’t be on the hook for a fantasy that never materializes.
Newsom’s claim that California is “miles ahead” of projects like Texas’ high-speed rail is laughable when his state hasn’t laid a single mile of high-speed track. His rhetoric can’t mask the reality: CHSRA’s failures are a case study in why bloated government projects need scrutiny. The Central Valley deserves real infrastructure, not empty promises.
