U.S. Transportation Secretary Sean Duffy said on Wednesday the Federal Railroad Administration had terminated approximately $4 billion in unspent federal funding for California’s High-Speed Rail Authority.
Duffy said the decision comes after an FRA compliance review of the project, where CHSRA was given two opportunities to respond consistent with the grant agreements. The FRA said neither response addressed the administration’s concerns.
“Governor (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. 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,” Duffy said. “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.”
Officials said the project has already spent $15 billion over the last 16 years without any tracks laid. At a price tag of $135 billion, Duffy said the project’s equivalent cost could buy every San Francisco and Los Angeles resident nearly 200 roundtrip flights between the two cities.
The move cancels $4 billion in unspent funds. Additionally, Duffy said he has directed the FRA to review other obligated and unobligated grants related to the CHSRA project, and to consult with the U.S. Department of Justice on the finding of FRA’s Compliance Review, including possibly clawing back funding to the project and other issues under federal law.