The Fowler Avenue grade separation is located between Elkhorn and Davis avenues. CAHSR photo

The Trump Administration is looking to claw back billions of federal dollars from the California high-speed rail project.

U.S. Transportation Secretary Sean Duffy released the Federal Railroad Administration (FRA) Compliance Review Report Wednesday that identified “no viable path forward for the project.”

According to a news release from the U.S. Department of Transportation, the high speed rail project is in default of the terms of its federal grant awards and has missed deadlines, experienced budget shortfalls and overrepresented projected ridership.

The two grants total approximately $4 billion.

The FRA sent a letter to CEO Ian Choudri of the California High Speed Rail Authority (CHSRA) noting project delays, mismanagement, waste and skyrocketing costs.

The CHSRA has up to 37 days to respond and the grants could be terminated thereafter.

The high-speed rail project has received bout $6.9 billion in federal dollars over the last 15 years, but has not laid any high-speed track.

“CHSRA is on notice — If they can’t deliver on their end of the deal, it could soon be time for these funds to flow to other projects that can achieve President Trump’s vision of building great, big, beautiful things again,” said Duffy.  

In February Duffy announced the USDOT would review two grants awarded to the project—a $929 million Cooperative Agreement from 2010 and $3.07 billion Cooperative Agreement from 2024.

 

Valley reactions

 The Trump Administrations move has garnered mixed reactions from Central Valley representatives.

Rep. Jim Costa (D-Fresno) said the move would undermine over 15,000 jobs created, the growth of local economies and connections between rural and urban communities.

“He doesn’t understand the San Joaquin Valley or the legal challenges that have delayed this project. Instead, he is stalling progress and killing good-paying jobs to score political points,” Costa said. “While President Trump remains stuck in the past, the people of California and the Valley are focused on building a cleaner, more connected future through modern rail infrastructure.”

 Costa said Trump could provide leadership to build high-speed rail corridors in America, as other countries have over the last 40 years in other parts of the world.

Rep. Vince Fong (R-Bakersfield) applauded the release of the report, saying it sends a message that the federal government will no longer “bankroll promises and failed leadership.”

“The California High-Speed Rail project has become one of the most glaring examples of government waste in our state’s history,” said Fong. “This failed project has spiraled into a chronically mismanaged and over-budget endeavor – costing taxpayers billions with little to show for it.”

The CHSRA strongly disagrees with the FRA’s conclusions and do not reflect the progress made to deliver high-speed rail in California, they said in a statement to the press. 

“While continued federal partnership is important to the project, the majority of our funding has been provided by the state,” a CHSRA spokesperson said. “To that end, the Governor’s budget proposal, which is currently before the Legislature, extends at least $1 billion per year in funding for the next 20 years, providing the necessary resources to complete the project’s initial operating statement.” 

They said the CHSRA will fully address and correct the record in a formal response to the FRA’s notice.