Trump rescinds $4B in federal funds for California high-speed rail

US President Donald Trump announced that his administration is withdrawing $4 billion in federal funding already allocated for California's high-speed rail project, citing a lack of viability for the long-delayed transportation plan, press reports said on Wednesday.

The decision follows a 315-page Federal Railroad Administration report detailing budget shortfalls, missed deadlines, and unreliable ridership forecasts, according to The Guardian.

The high-speed rail, planned as an 800-mile (1,287-kilometer) network connecting San Francisco and Los Angeles with speeds of up to 220 mph (354 kph), has faced persistent financial and logistical hurdles.

A key concern raised was California's failure to identify $7 billion in additional funds required to complete the initial 171-mi (271-km) segment between Merced and Bakersfield.

"There is no viable path forward," the Transportation Department said, adding that they are considering clawing back more federal funds previously allocated.

Transportation Secretary Sean Duffy described the project as "the definition of government incompetence and possibly corruption."

In response, California Governor Gavin Newsom said, referring to recent airplane accidents: "Won't be taking advice from the guy who can't keep planes in the sky."

The California High-Speed Rail Authority said the administration's assessment "does not reflect the substantial progress made."

The authority pointed to ongoing construction across 119 mi (192 km) in the Central Valley and proposed $1 billion in annual state funding for the next two decades.

Originally approved by voters in 2008 with a $10 billion bond, the project's estimated cost has risen from $89 billion to $128 billion.

It was initially slated for completion in 2020 at a cost of $33 billion.

In 2021, then-President Joe Biden restored a $929 million grant revoked by Trump in 2019, during his first term in office.