The Trump administration has dealt another blow to California’s embattled high-speed rail project, canceling an additional $175 million in federal funding on August 26, 2025. This follows the earlier revocation of $4 billion in grants in July, intensifying the feud between President Donald Trump and Governor Gavin Newsom. The latest cuts target funding for track extensions, grade separations, design work, and a rail station in Madera, part of the long-delayed plan to connect Los Angeles and San Francisco. Transportation Secretary Sean Duffy called the project a “boondoggle,” citing 16 years of delays, a $7 billion funding gap, and no high-speed track laid despite $15 billion spent.
Newsom condemned the decision as “illegal” and politically motivated, arguing it undermines 15,500 jobs and California’s leadership in high-speed rail. The state has already built 50 major structures and 70 miles of guideway, with track-laying set to begin soon. California’s lawsuit against the initial $4 billion cut remains ongoing, alleging the Trump administration’s actions violate legally binding agreements. Newsom’s budget proposes $1 billion annually for 20 years to keep the project alive, seeking private investment to offset federal losses.
Critics, including state Republicans, praise the cuts, arguing the project’s cost has ballooned from $33 billion to $128 billion with no clear completion date. Supporters counter that the rail is vital for economic growth in the Central Valley. As legal battles loom, the project’s future hangs in the balance, emblematic of broader tensions between Trump and Newsom.
