U.S. Transportation Secretary Sean P. Duffy released a report finding that California’s high-speed rail project has “no viable” path forward, threatening to terminate grants for the project.
The California High-Speed Rail Authority (CHSRA) has “missed deadlines, budget shortfalls, and overrepresentation of projected ridership,” a news release explains.
According to the report, the Federal Railroad Administration (FRA) found that the train has “no viable path” to completion.
“Given CHSRA’s past performance, including substantial change orders, numerous contractor delay claims, protracted third-party arrangements, failure to account adequately for project risk, and lack of a credible plan to close the $7 billion funding gap, CHSRA is not likely to complete the [Early Operating Segment] by 2033.”
“Despite substantial Federal support and funding, CHSRA does not have the capacity to deliver the full CHSR System,” the report adds. “This 2025 compliance review demonstrates that CHSRA has not learned from its mistakes and mismanagement and has therefore failed to create an organization capable of effectively and efficiently managing project delivery.”
The CHSRA has up to 37 days to respond to the matter or risk its grants being terminated.
“I promised the American people we would be good stewards of their hard-earned tax dollars. This report exposes a cold, hard truth: CHSRA has no viable path to complete this project on time or on budget. CHSRA is on notice — If they can’t deliver on their end of the deal, it could soon be time for these funds to flow to other projects that can achieve President Trump’s vision of building great, big, beautiful things again,” Duffy said. “Our country deserves high-speed rail that makes us proud – not boondoogle trains to nowhere.”
