Trump Ends Federal Funding for California’s $135 Billion High-Speed Rail Fiasco

Federal Taxpayers Are Finally Done Subsidizing the “Train to Nowhere”

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⏱️ 3 minute read - 4 if you you watch the video

The End of a Taxpayer Nightmare

After strongly signaling that this would happen, President Trump’s administration delivered a long-overdue blow to California's high-speed rail project, one of the most egregious examples of government waste. Federal funding—$4 billion in unspent grants—has been yanked, halting a boondoggle that has devoured billions while delivering broken promises. This move, spearheaded by Transportation Secretary Sean Duffy, follows a scathing federal review exposing missed deadlines, budget overruns, and inflated ridership projections. Initially pitched at $33 billion with a 2020 completion date, the project now carries a $106 billion price tag, with track-laying only beginning in 2025 after 16 years and $15 billion spent.

Trump himself didn’t mince words on Truth Social:

Secretary Duffy echoed this sentiment on X:

And he attached this hard-hitting short video to his X post…

The Federal Railroad Administration’s report backs this up, citing a $7 billion funding gap and failure to meet grant obligations.

This wasn’t sudden. As I wrote earlier this year, the U.S. Department of Transportation had been sounding alarms about this project’s mismanagement for months. The writing was on the wall: a project this bloated, delayed, and disconnected from reality was bound to collapse.

A Project Doomed from the Start

In 2008, California voters approved a $10 billion bond for a high-speed rail line connecting San Francisco and Los Angeles, with promises of efficiency and economic growth. The plan was ambitious: an 800-mile system, 220 miles per hour, completed by 2020 for $33 billion. Fast forward to 2025: costs have ballooned to $106 billion, the timeline has been pushed to 2033 for a mere 119-mile segment from Bakersfield to Merced, and track-laying has only recently begun on a limited section. The California High-Speed Rail Authority has spent nearly $15 billion on planning, land acquisition, and partial infrastructure, with little to show.

This wasn’t just poor execution but a miscalculation from day one. Overregulation, bureaucratic red tape, and a refusal to adapt turned a bold idea into a fiscal black hole. The state’s cap-and-trade funds, meant to support the state’s quixotic efforts to reduce human-made carbon emissions, have been siphoned into this sinking ship instead, with Governor Gavin Newsom proposing to lock in $1 billion annually through 2045. Meanwhile, private investors are hesitant, and the project’s ridership projections—wildly optimistic from the start—have been debunked by federal auditors. This was a train wreck waiting to happen.

Newsom’s Desperate Defense

Gavin Newsom isn’t going quietly. The governor, who has staked his political future on this project, called the funding cut “illegal” and vowed to fight back. In a statement, he declared, “Trump wants to hand China the future and abandon the Central Valley. We won’t let him.” He touted progress—171 miles under construction, 50 major structures completed, and track-laying on the horizon—while accusing the Trump administration of breaking legally binding agreements. California High-Speed Rail Authority CEO Ian Choudri echoed this, insisting the state has met every obligation.

Newsom owns this disaster. As governor, he scaled back the project in 2019, admitting there was “no path forward” after costs hit $77.3 billion, yet he doubled down on the Central Valley segment. His administration’s mismanagement—missed deadlines, budget shortfalls, and a refusal to address federal concerns—invited this cut. He’s threatening and framing lawsuits as patriotic, but the numbers don’t lie. This project’s failure is a direct reflection of his leadership.

An Albatross for a Presidential Hopeful

As Newsom eyes a White House run, this high-speed rail fiasco becomes a significant liability. The project’s failure —$106 billion in costs with minimal results—undermines his credibility on fiscal management and government competence. Trump’s funding cut gives Republicans a powerful talking point about wasteful Democratic spending, while voters increasingly skeptical of big-government projects will question Newsom’s ability to deliver on promises.

So, Does It Matter?

Today’s funding cut isn’t just a policy win; it’s a wake-up call. Taxpayers deserve better than projects that prioritize optics over outcomes. California’s high-speed rail was a fantasy sold on hope, not reality, and its collapse was inevitable. A shameless giveaway by Newsom, and Jerry Brown before him, to their union backers. We can hope this marks the end of such extravagance—and a return to common sense in how public funds are spent. But with Newsom and his Democrat Supermajorities in the State Legislature controlling state policy, do not hold your breath.