As Trump Hopes to Yank 4 Billion From California High-Speed Rail, State Looks for Private Funding

The Trump administration plans to withdraw $4 billion in federal funding for California's high-speed rail project, citing budget overruns and missed deadlines. Governor Gavin Newsom announced that California will appeal this decision and seek legal recourse to restore funding. New CEO Ian Choudri stated that the state is compliant with federal requirements and is exploring private investment options to mitigate the loss. Currently, the state provides $1 billion annually, but experts warn that this will merely prolong the project without yielding operational trains for years. Choudri is considering real estate deals and partnerships with private equity to generate additional funding.

The project has faced skepticism, with critics pointing to a history of delays and doubts about whether it will be completed. The best-case scenario predicts operational service between Merced and Bakersfield by 2033. The situation underscores the ongoing challenges faced by ambitious infrastructure projects in California.