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

FILE - A statue sits on the campus of Lincoln University, Wednesday, Jan. 17, 2024, in Jefferson Ci...

Associated Press

HBCUs are underfunded. A legal effort starting in Missouri seeks to fix it

An effort to address decades of underfunding at some historically Black colleges and universities kicked off Wednesday with a lawsuit against the state of Missouri. Students and graduates of Lincoln University in the state’s capital of Jefferson City allege the lack of financial resources undercut their education and devalued their degrees. More than a dozen […]

11 minutes ago

FILE - The OpenAI logo is displayed on a cell phone in front of an image generated by ChatGPT's Dal...

Associated Press

Some guardrails on ChatGPT for Teens don’t work as promised, watchdog group says

Some of the guardrails that OpenAI included in its ChatGPT for Teens product don’t work as intended and the chatbot poses an “unacceptable risk” to children, according to a report Wednesday by Common Sense Media. The watchdog group urged OpenAI to restrict the chatbot to adults “until it can offer a safe, developmentally appropriate experience.” […]

28 minutes ago

FILE - Soldiers from the 3rd Armored Cavalry Regiment storm the grounds of the Soldier Readiness Ce...

Associated Press

As Army moves to execute Fort Hood shooter, questions about procedure linger

The former U.S. Army officer convicted of killing 13 people in the 2009 shooting rampage at Fort Hood, Texas, is scheduled to be executed by firing squad in December in what would be the first military execution in more than 65 years. The announcement stunned an attorney who had represented Nidal Malik Hasan in a […]

36 minutes ago

The map above shows the current position of Tropical Storm Isaias in the Gulf of Mexico on Oct. 7, ...

Associated Press

Weaker wind shear during El Nino plays a role in the formation of Isaias in the US Gulf

The super El Nino has been a nonstop machine cranking out tropical storms that have seemingly rolled through the Pacific region like rush-hour traffic. Now, it’s the U.S. Gulf Coast’s turn. One of the strongest El Nino years on record meant a quiet first four months of the Atlantic hurricane season, but that’s no longer […]

1 hour ago

Student Isabel Breslin works on her laptop during a sit-in protest at Cornell University, Wednesday...

Associated Press

Cornell students stage sit-in to protest university’s handling of alleged 2024 gang rape

ITHACA, New York (AP) — Some Cornell students staged a sit-in at a dining hall and vowed not to spend money on campus Wednesday to protest sexual violence and how the university has handled complaints, in the latest expression of outrage over an alleged 2024 gang rape at a fraternity house. A handwritten sign reading […]

1 hour ago

This satellite image from the National Oceanic and Atmospheric Administration shows Tropical Storm ...

Associated Press

Tropical Storm Simon forms in the Pacific Ocean off the southwestern coast of Mexico

MIAMI (AP) — Tropical Storm Simon formed Wednesday in the Pacific Ocean off the southwestern coast of Mexico, the National Hurricane Center said. The center of the cyclone was located about 175 miles (285 kilometers) south-southeast of Lazaro Cardenas, Mexico, and it was forecast to approach the coastline on Saturday. Simon was expected to bring […]

1 hour ago

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