Trump Administration Aims to Redirect $2.4 Billion from California's High-Speed Rail Project

Mon Sep 29 2025 00:26:22 GMT+0300 (Eastern European Summer Time)

The Trump administration has unveiled a new program to prioritize rail project funding, pulling $2.4 billion from California's high-speed rail initiative, igniting legal disputes.

The Trump administration has announced a $5 billion rail project program, redistributing $2.4 billion from California’s high-speed rail project. This move has prompted California officials to challenge the legality of reallocating funds while also removing certain DEI and climate-related requirements that were previously under the Biden administration. The Federal Railroad Administration emphasizes safety and the need for improvements in railway crossings, indicating a shift in funding priorities.

The Trump administration plans to redirect $2.4 billion from California’s troubled high-speed rail project as part of a new $5 billion initiative aimed at funding rail projects nationwide. This strategy underscores a shift in priorities, emphasizing safety and family needs over previous considerations such as climate change and diversity, equity, and inclusion (DEI) initiatives.

Under the new program, the Federal Railroad Administration (FRA) has stripped away terms associated with climate goals, opting instead to focus on projects in places with higher birth and marriage rates, as well as those that enhance safety at railroad crossings. Secretary of Transportation Sean Duffy criticized California Governor Gavin Newsom’s high-speed rail plans, labeling them a financial waste.

Our new National Railroad Partnership Program will emphasize safety – our number one priority – without the radical ... DEI and green grant requirements, Duffy stated during an announcement about the new program.

The funds being redirected were previously allocated to California's efforts to create a high-speed rail link between San Francisco and Los Angeles, which has been plagued by cost overruns and delays. California officials have already filed a lawsuit against the federal government, arguing the funding withdrawal is unlawful and premature amidst ongoing legal arguments about the project.

Micah Flores, a spokesperson for the California High-Speed Rail Authority, expressed confidence in the agency's legal position, stating, The FRA’s decision to terminate federal funding for California high-speed rail was unlawful, unwarranted, and is being challenged in federal court. Now, their attempt to redirect a portion of that funding, currently the subject of litigation, is premature. Flores also confirmed that the Authority is prepared to take further legal action.

In tandem with this shift, the administration plans to consider enhancements that cater to families, such as nursing areas and expanded waiting spaces in train stations, aiming to create a more accommodating environment for travelers. The application process for these funds is set to close on January 7.