The Federal Railroad Administration initiated a review of California’s 400-mile high-speed rail project, aimed at connecting Los Angeles to San Francisco, following concerns made by the Trump Administration, Transportation Secretary Sean Duffy announced Thursday.
The review is expected to determine whether an estimated $4 billion in taxpayer money should remain committed to the proposed project to build a segment in the Central Valley between Merced and Bakersfield. The project was initially supposed to be completed by 2020 for a total of $33 billion, however, that timeline has grown as well as the cost.
“People were excited. They were thrilled to take people off the road, out of the air and put them on rail,” Duffy said during a news conference at Union Station in downtown L.A.. “Where are we today? Well, today, we are severely — no pun intended — off track.”
A recent estimate by the California High Speed Rail Office of the Inspector General noted the Merced-to-Bakersfield segment has a funding gap of at least $6.5 billion despite California being set to receive more than $4 billion from the Biden Administration.
The segment is most likely to be completed by 2033, and the total estimate for the entire project is $106 billion, more than three times the original cost, according to the secretary.
“For too long, taxpayers have subsidized the massively over-budget and delayed California High Speed Rail project,” Duffy said. “President (Donald) Trump is right that this project is in dire need of an investigation.”
Duffy questioned whether the $4 billion promised by the Biden Administration should be allocated to the transportation project.
“We’re going to look at whether California’s High Speed Rail has actually complied with agreements that they’ve signed with the federal government,” Duffy said. “We can’t just say we’re going to give money and then not hold states accountable to how they spend that money.”
Duffy said there are some high-speed rail projects they can support such as the Brightline West rail project, connecting Los Angeles to Las Vegas. But due to the slow progress and high overruns by the California High Speed Rail Authority, the 400-mile run requires a detailed review.
In a statement, CHSRA CEO Ian Choudri said that “We welcome this investigation and opportunity to work with our federal partners.”
“With multiple independent federal and state audits completed, every dollar is accounted for, and we stand by the progress and impact of this project,” Choudri continued.
He mentioned that 171 miles of rail are under active construction with more than 50 major structures completed. The project has also created 14,600 jobs and engaged with more than 880 small businesses.
More than 30 protesters staged themselves just outside Duffy’s news conference. They chanted “We are taxpayers. Ask us what we want” and “Build the rail” loud enough to disrupt the secretary’s remarks.
One of these protesters was Max Rico, a lifelong resident of Los Angeles.
“I’m out here because it’s not fair that taxpayers aren’t getting a say right here,” Rico told City News Service. “We’re having these MAGA guys coming from D.C. taking away federal funding for badly needed projects.”
Rico, who said he teaches students about climate change in the South Bay, added that it’s a really serious problem. He said, “It breaks my heart to see all my students who have no hope for our future with this administration.”
He supports the high-speed rail project because it would play a significant part in reducing vehicles on roads and flights, meaning a reduction in greenhouse gas emission as well as carbon dioxide and global warming.
Rico countered that part of the reason for delays are a result of bureaucracy, red tape and lawsuits filed by residents in the Central Valley.
“I understand why people don’t see it as our priority, but I’d like for people to think long term,” Rico told CNS. “How are we going to address the catastrophe that is climate change?”
“One of the biggest ways is to reduce greenhouse gas emission throughout projects like this one,” Rico added.
Earlier this week, while speaking with reporters, Trump criticized the rail project and described it as the “worst-managed project” he’s ever seen. He also incorrectly claimed the project was “hundreds of billions over budget.”
CHSRA officials refuted Trump’s claims. In response, they noted that of the approximately $13 billion spent on the project, $10.5 billion comes from the state and those expenditures had more than $22 billion of “economic impact.”
“Every dollar of the project is accounted for and has been thoroughly reviewed by the independent Office of the Inspector General, whose sole focus is improving oversight and accountability of the California High Speed Rail project.

Kudos to Duffy-
There is no economic justification for this project. The ridership required to cover an investment of $100+ billion simply does not exist.