Trump Administration Threatens to Withdraw Funding for California's High-Speed Rail

California's ambitious high-speed rail project, which has been in the works since 2008, is facing a significant hurdle. The Trump administration's Department of Transportation (DOT) has issued a report that casts doubt on the project's viability. DOT head Sean Duffy has given California just over a month to address these concerns or risk losing $4 billion in federal funding, as reported by Reuters.

The Federal Railroad Administration's 315-page report highlights that California has missed several deadlines related to the high-speed rail project. It also points out that the state has yet to secure $7 billion needed to build a rail segment between Merced and Bakersfield, a requirement for the project's continuation by next summer.

The report accuses California of misleading taxpayers regarding the $4 billion investment, stating there is no feasible plan to complete even a partial segment on time. The DOT has set a mid-July deadline for California to respond, threatening to terminate federal contracts if the issues are not adequately addressed.

The California High-Speed Rail Authority has labeled the report as "misguided" and plans to issue a formal response soon. A spokesperson for the agency reaffirmed their commitment to completing the nation's first true high-speed rail system, connecting major population centers in the state.

President Trump has been critical of the rail project since returning to office. His administration initiated a review of a $3.1 billion federal grant for the project in February and criticized it during a joint appearance with Canadian Prime Minister Mark Carney, calling it "the worst cost overrun" he has seen.

Despite the challenges, officials involved in the project were not surprised by the federal scrutiny, having anticipated potential funding shortfalls. While the project has faced numerous delays and cost overruns, California has funded 82% of it, with federal grants covering only 18%.

Although the high-speed rail has been labeled a "train to nowhere," over 119 miles of rail have been completed between Merced and Bakersfield. Abandoning the project now would be more wasteful than finishing it, especially with the expected economic benefits for communities along the route.