California sues to stop Trump administration from pulling $4 billion from high-speed rail project
Gov. Gavin Newsom announced on Thursday that California is filing a lawsuit to stop the Trump administration from pulling approximately $4 billion from California's embattled high-speed rail project.
The Governor's Office claims the move is "yet another political stunt to punish California."
"In reality, this is just a heartless attack on the Central Valley that will put real jobs and livelihoods on the line," Newsom said. "We're suing to stop Trump from derailing America's only high-speed rail actively under construction."
U.S. Transportation Secretary Sean P. Duffy announced the termination of the unspent federal funds on Wednesday, calling the high-speed rail project a "boondoggle" plagued by years of what a compliance review from his department found to be "significant delay and substantial cost overruns."
The comprehensive 315-page compliance review by the Federal Railroad Administration (FRA) was released in June and concluded that the California High-Speed Rail Authority (CHSRA) could not meet its obligations under the federal grant agreements and has no viable plan to complete the project.
"This is California's fault. Governor Newsom and the complicit Democrats have enabled this waste for years. Federal dollars are not a blank check – they come with a promise to deliver results... It's time for this boondoggle to die," Duffy said.
In a 22-page letter sent to the CHSRA, the FRA said the decision to terminate funding is effective immediately. The DOT said that roughly $15 billion has been spent on the project, with not a single mile of high-speed rail track laid.
On Wednesday, just hours after Duffy made the announcement, Newsom sharply condemned the Trump administration's decision to revoke the funding, calling it "illegal" and a betrayal of American infrastructure in favor of foreign competitors.
"Trump wants to hand China the future and abandon the Central Valley. We won't let him," Newsom said.
China has the largest and fastest high-speed rail system in the world. California would be the first U.S. state to have high-speed rail upon completing the project, which was initially projected to be finished by 2020. Newsom's office said that passenger service is expected to begin between 2030 and 2033.
Based on its compliance review, the FRA cited nine key findings, including a $7 billion funding gap to complete that Merced-Bakersfield stretch, missed procurement deadlines, and overrepresented ridership estimates. The CHSRA rejected those findings, pointing to Newsom's proposal to extend the state's Cap-and-Trade program, "which would guarantee at least $1 billion annually through 2045."
The project, which Newsom said is now entering its track-laying phase, has more than 171 miles under active construction between Merced and Bakersfield and over 50 major structures completed, including bridges and viaducts.
The CHSRA estimates the full cost of the project to be $128 billion, up from an initial estimate of $33 billion.
CHSRA CEO Ian Choudri echoed the governor's stance, pointing to what he described as major progress on the project.
"These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025," Choudri said. "America's only high-speed rail project underway is fast approaching the track-laying phase, with 15,500 jobs created and 60 miles of guideway already complete."
Newsom said the CHSRA has completed all environmental clearances across the entire 463-mile corridor from Los Angeles to San Francisco. The Governor's Office noted other progress that included "the electrification of Caltrain complete, trainset selection underway, station and track construction on deck, [and] continued work with partner rail systems to create a southwest regional high-speed rail network."
"This is no time for Washington to walk away from America's transportation future," Choudri added.
Duffy also instructed the FRA to begin reviewing other state and federal funds tied to the project, including obligated and unobligated grants. Duffy said his department will consult with the Department of Justice to explore clawing back federal funds already spent and investigate any potential legal violations stemming from the CHSRA's handling of the project.
Democratic leaders, including House Speaker Emerita Nancy Pelosi and Senators Alex Padilla and Adam Schiff, have accused the Trump administration of using the review process of the high-speed rail project to punish California for political reasons. Following the compliance review, Rep. Dave Cortese (D-San Jose) called the Trump administration's intent to terminate funding "partisan theatrics" that seek to derail clean transportation.
Republicans, however, welcomed the FRA's decision. Rep. Kevin Kiley (R-Rocklin) and Sen. Shannon Grove (R-Bakersfield) both called for an end to the project, with taxpayer funds being redirected elsewhere.
"California High-Speed Rail is the worst public infrastructure disaster in U.S. history," Kiley said. "A project that was supposed to be finished five years ago at a cost of $33 billion is now projected to take until the end of the century at a cost of $130 billion. I am grateful that President Trump and Secretary Duffy are sparing our taxpayers by cutting off federal funding. The state must now follow suit, wind this disastrous project down, and spend our transportation dollars where they are needed: our roads."
