California’s long-delayed high-speed rail project is again in financial crisis, with officials now asking the state legislature for an additional $1 billion annually to keep it afloat. The request follows President Donald Trump’s 2024 decision to revoke $4 billion in federal funding, citing a federal report declaring “no way forward” for the embattled project.
The high-speed rail authority hopes to tap California’s cap-and-trade program—a carbon tax system for polluters that funds so-called climate initiatives. Governor Gavin Newsom previously proposed allocating a large portion of the program’s revenue to the rail line, despite acknowledging in 2019 that the original plan was too expensive and unworkable.
Originally approved by voters in 2008 with a promised cost of $33 billion and a completion date of 2020, the project has ballooned to over $100 billion and is nowhere near completion. So far, only the Central Valley segment is under construction, with completion now projected for 2032. The full route connecting Los Angeles and San Francisco may not be ready until 2038—nearly two decades after the original deadline.
Despite massive taxpayer investment, the Central Valley section—running through one of the state’s least populated regions—is expected to operate at a loss. Critics argue the line has little public demand and offers limited benefit, particularly as a separate, privately-run high-speed rail project from Southern California to Las Vegas has already secured federal support and is progressing faster.
The project has been plagued by environmental lawsuits, permitting delays, right-of-way disputes, and technical problems. President Trump first pulled $1 billion from the project in 2019. President Joe Biden briefly restored funding, adding $3.1 billion under Secretary Pete Buttigieg, only for the Trump administration to again halt federal support.
Secretary of Transportation Sean Duffy’s June report concluded the project was beyond saving. Nevertheless, California Democrats continue pushing forward, now seeking to extract further billions from state taxpayers amid a worsening budget crisis.
The state is facing back-to-back deficits after spending through a once-record $100 billion surplus fueled by post-pandemic federal funds. Amid this financial strain, the decision to pour more money into a failing rail line has sparked renewed controversy, especially as Governor Newsom has wavered repeatedly on the project—initially opposing it under Governor Jerry Brown, then supporting, canceling, and partially reviving it.
Meanwhile, thousands of miles of California roads and bridges remain in disrepair, while the state continues funding hotel rooms for illegal migrants, syringe distribution, and climate projects with questionable return. Lawmakers now face a stark choice: double down on a high-speed dream, or admit it’s time to hit the brakes.
