NATIONAL NEWS

Trump administration pulls $4B in federal funding for California’s bullet train project

Jul 16, 2025, 6:55 PM | Updated: Jul 17, 2025, 4:36 pm

FILE - Ironworkers with the California High-Speed Rail Authority work on the Hanford Viaduct, Tuesd...

FILE - Ironworkers with the California High-Speed Rail Authority work on the Hanford Viaduct, Tuesday, April 15, 2025, in Kings County, Calif. (AP Photo/Godofredo A. Vásquez, File)
Credit: ASSOCIATED PRESS

(AP Photo/Godofredo A. Vásquez, File)

SACRAMENTO, Calif. (AP) — The Trump administration revoked federal funding for California’s high-speed rail project on Wednesday, intensifying uncertainty about how the state will make good on its long-delayed promise of building a bullet train to shuttle riders between San Francisco and Los Angeles.

The U.S. Transportation Department announced it was pulling back $4 billion in funding for the project, weeks after signaling it would do so. Overall, a little less than a quarter of the project’s funding has come from the federal government. The rest has come from the state, mainly through a voter-approved bond and money from its cap-and-trade program.

President Donald Trump and Transportation Secretary Sean Duffy both have slammed the project as a “train to nowhere.”

“The Railroad we were promised still does not exist, and never will,” Trump wrote on Truth Social. “This project was Severely Overpriced, Overregulated, and NEVER DELIVERED.”

The loss marks the latest blow to California by the Trump administration, which has blocked a first-in-the-nation rule to phase out the sale of new gas-powered cars, launched investigations into university admission policies and threatened to pull funding over transgender girls being allowed to compete in girls sports.

It also comes as rail project leaders are seeking private investment to help pay for its estimated price tag of more than $100 billion.

Voters first approved the project in 2008 and it was supposed to be operating this decade. But cost estimates have consistently grown and its timeline pushed back.

State officials are now focused on building a 119-mile (192-kilometer) stretch connecting the Central Valley cities of Bakersfield and Merced that is set to be operating by 2033. The California High Speed Rail Authority is slated to release a report this summer to state lawmakers with an updated funding plan and timeline for the project.

Authority officials wrote in a letter earlier this month that the Trump administration made up its mind about revoking funding before thoroughly reviewing the project. They noted that more than 50 structures have already been built, including underpasses, viaducts and bridges to separate the rail line from roadways for safety.

“Canceling these grants without cause isn’t just wrong — it’s illegal,” authority CEO Ian Choudri said in a statement Wednesday. “These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025.”

The authority has asked potential private investors to express their interest by the end of the month.

Democratic Gov. Gavin Newsom said the state will keep “all options on the table” to fight the revocation of federal funds.

“Trump wants to hand China the future and abandon the Central Valley. We won’t let him,” he said in a statement.

The state has “no viable plan” to complete even the Central Valley segment, said Drew Feeley, acting administrator of the transportation department’s Federal Railroad Administration, in a report released last month. He called the project a “story of broken promises” and a waste of taxpayer dollars.

California Democrats also have criticized project spending. Democratic Assemblymember Rebecca Bauer-Kahan said at a budget hearing earlier this year that her constituents “overwhelmingly believe” high-speed rail spending “has been irresponsible.”

Newsom plans to extend the state’s cap-and-trade program, a key funding source for the project which is set to expire at the end of 2030, through 2045.

The program sets a declining limit on the total amount of greenhouse gas emissions large emitters can release. Those polluters can buy allowances from the state needed to pollute, and about 45% of that money goes into what’s known as the Greenhouse Gas Reduction Fund, according to the Independent Emissions Market Advisory Committee, a group of experts that reviews the program.

The fund helps pay for climate and transportation projects, including high-speed rail.

The bullet train project receives 25% of the money from the fund, which ends up being a little less or a little more than $1 billion annually, depending on the year. Newsom in May proposed guaranteeing $1 billion a year for the project from the fund, but lawmakers have not agreed to that.

___

Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna

National News

Vehicles drive past a statue of a swinging boy at a square in Tehran, Iran, Monday, Aug. 10, 2026. ...

Associated Press

Iranian-backed Houthi rebels renew attacks on key port city, and other developments in the Mideast

Iranian-backed Houthi rebels renewed their attacks Tuesday on government-controlled areas in Yemen as ongoing violence threatened to reignite the country’s civil war and raised fears over new threats to shipping lanes. Iran’s foreign minister, meanwhile, underscored Tehran’s stance against reopening the Strait of Hormuz until the U.S. meets its conditions, in comments that came after […]

2 hours ago

U.S. Rep. Shomari Figures greets members of the public after speaking at the Washington Brief serie...

Associated Press

Republicans pick nominee for Alabama US House district they redrew after Supreme Court ruling

DOTHAN, Ala. (AP) — Republicans aiming to flip Alabama’s 2nd Congressional District after redrawing the heavily Black district in their favor will pick their nominee Tuesday to challenge U.S. Rep. Shomari Figures, the Democratic incumbent who is seeking a second term despite the political headwinds. The district is one of several Democratic-leaning districts across the […]

7 hours ago

U.S. Rep. John Larson D-Conn., attends a campaign event, Saturday, July 25, 2026, in Bristol, Conn....

Associated Press

Connecticut Democrats weigh generational change as US. Rep. John Larson, 78, faces primary fight

Connecticut Democrats are choosing whether to stick with U.S. Rep. John Larson, a longstanding fixture in the state’s politics, or embrace a generational change by choosing a far younger replacement. Larson, 78, has represented the Hartford and central Connecticut-based 1st Congressional District since 1999. After largely avoiding serious Democratic opposition during his time in Congress, […]

7 hours ago

Democratic gubernatorial candidate Francesca Hong poses for a photo Friday, July 24, 2026, in Milwa...

Associated Press

What to watch Tuesday: Primaries in Wisconsin and Minnesota showcase Democratic divide

The latest battle over the Democratic ideological divide this year shifts to the upper Midwest on Tuesday as nominating contests for governor in Wisconsin and U.S. senator in Minnesota pit left-wing candidates against more traditional ones. In Wisconsin, state Rep. Francesca Hong, a self-described democratic socialist, is the front-runner for the party’s nomination for governor […]

7 hours ago

President Donald Trump walks to board Air Force One at Morristown Airport, Sunday, Aug. 9, 2026, in...

Associated Press

Trump pivots back to sanctions for Iran as other strategies to end his war fizzle

WASHINGTON (AP) — President Donald Trump likes to say that he started his war with Iran after 50 years of economic pressure had failed to stop its nuclear weapons ambitions — but he’s now betting that another financial squeeze can bring an end to that war. The Trump administration is hoping that months of bombing […]

7 hours ago

Minnesota Lt. Gov. Peggy Flanagan, a Democratic candidate for U.S. Senate, greets supporters during...

Associated Press

Minnesota primary is latest Democratic proxy fight for Senate and a test for Trump-backed hopefuls

MINNEAPOLIS (AP) — The factional fight gripping the Democratic Party goes to Minnesota on Tuesday, when voters will settle another moderate-versus-progressive U.S. Senate primary. The race between centrist U.S. Rep. Angie Craig and progressive Lt. Gov. Peggy Flanagan is playing out in the aftermath of President Donald Trump’s aggressive immigration surge, which led to the […]

7 hours ago

Trump administration pulls $4B in federal funding for California’s bullet train project