Home Business Trump administration targets $4 billion in financing for California’s high-speed rail project.

Trump administration targets $4 billion in financing for California’s high-speed rail project.

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Trump administration targets $4 billion in financing for California’s high-speed rail project.
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LOS ANGELES — The California high-speed rail initiative is once again under scrutiny from federal officials as the Trump administration has initiated an investigation that could lead to the withdrawal of approximately $4 billion in federal finances.

The project, which was initially backed by voters in 2008 with a $10 billion bond measure aimed at connecting San Francisco and Los Angeles in under three hours, has faced numerous hurdles. Originally projected to cost $33 billion and to be completed by 2020, the high-speed rail has been plagued by budget issues, delays, and rising expenses over the years.

Currently, state officials are focused on a specific 171-mile (275-kilometer) segment that links Bakersfield and Merced in California’s Central Valley, with plans to become operational by 2033. However, the anticipated cost of the entire rail line stretching from San Francisco to Los Angeles has ballooned to an estimated $106 billion, and state officials are optimistic about completing the project within the next two decades, depending on available funding.

Transportation Secretary Sean Duffy announced at a press conference in Los Angeles that he is directing his staff to assess whether the California High-Speed Rail Authority met its obligations to secure billions in federal aid. He hinted that if the commitments were not upheld, the funds might redirect to other deserving infrastructure projects throughout the country.

During President Trump’s first term, almost $1 billion in federal funding for the project was terminated in 2019. The administration of President Biden restored some of that funding and added an additional $3.3 billion in December 2023. If the current funding faced withdrawal, it would significantly damage the high-speed rail project, as the rail authority’s latest business strategy depends on securing $8 billion in federal funds to cover existing gaps.

Ian Choudri, the CEO of the California High-Speed Rail Authority, expressed support for the investigation, affirming that all expenditures had been thoroughly audited, asserting the ongoing positive impact of the project. He highlighted that the initiative has already generated nearly 15,000 jobs and completed over 50 significant structures.

Criticism of the project has intensified among Republican lawmakers, with some labeling it as a massive failure in U.S. public infrastructure. On the day of the investigation announcement, Republican Rep. Kevin Kiley condemned the high-speed rail, referring to it as a failure and advocating for a formal termination of the project, which he believes cannot be justified either for state or federal taxpayers. He even introduced legislation earlier this year to prevent any further federal funding from being allocated to the endeavor.

During the announcement in Los Angeles’ Union Station, Kiley was present alongside Duffy, where they faced interruptions from around 30 protesters who voiced their support for the high-speed rail and held signs with statements like “CA has no king” and “Don’t delay our train.”

Eli Lipmen, the executive director of Move LA, an organization that promotes effective public transportation, asserted that the rail project still retains significant support among Californians. He criticized the investigation as insincere, reinforcing that many do not understand the basis of the probe.

Labor leaders from the Transportation Trades Department, which encompasses all rail unions in the country, spoke up in favor of the high-speed project. They urged for strong leadership from Trump, framing the rail line as an essential and innovative transportation effort. They echoed sentiments that the U.S. should aspire to develop modern, efficient public transportation systems akin to those found in Japan.

As the investigation unfolds, the future of California’s high-speed rail project remains uncertain, with widespread opinions forming on both sides as the discussions of infrastructure funding and priorities continue nationally.