FRA rescinds $4 billion in unspent federal funding to CHSRA
The Federal Railroad Administration (FRA) is rescinding $4 billion of unspent federal funds from the California High-Speed Rail Authority (CHSRA) following FRA’s compliance review. According to FRA’s compliance review findings, the agency determined that CHSRA was in default of the terms of its federal grant awards and intended to terminate two cooperative agreements.
FRA stated the lack of visible progress was one of the biggest factors, saying that “not one high-speed track has been laid” after 16 years and roughly $15 billion already spent on the project. The total estimated project cost has also increased significantly to $135 billion.
“This is California’s fault. [California] Gov. [Gavin] Newsom and the complicit Democrats have enabled this waste for years. Federal dollars are not a blank check; they come with a promise to deliver results,” said U.S. Department of Transportation (USDOT) Secretary Sean Duffy. “After over a decade of failures, CHSRA’s mismanagement and incompetence has proven it cannot build its train to nowhere on time or on budget. It’s time for this boondoggle to die. President [Donald] Trump and I will always fight to ensure your tax dollars only go to projects that accomplish great, big, beautiful things.”
Following FRA’s compliance review, CHSRA was given two opportunities to respond consistent with the grant agreements. According to FRA, neither of the submitted responses addressed its concerns. The full termination letter sent to CHSRA can be found on USDOT’s website.
“It’s been clear for years that the California high-speed rail project has no reasonable or credible path forward for successful completion of the promised system, and yet the Biden Administration continued to waste billions of taxpayer dollars on it,” said House Transportation and Infrastructure Chair Sam Graves (R-MO-6). “Pulling federal funding from this project is long overdue, and I commend President Trump, Secretary Duffy and this administration for protecting taxpayers’ money.”
In addition to canceling $4 billion in unspent federal funds to CHSRA, Secretary Duffy has directed FRA to review other obligated and unobligated grants related to the CHSRA project. The USDOT said it will also consult with the Department of Justice on the finding of FRA’s compliance review, including potentially clawing back funding related to California’s high-speed rail and other potential issues under federal law.