Trump Admin Puts One Of California’s Biggest Money Sinks Under Microscope

The Trump administration’s Department of Transportation (DOT) announced on Thursday that it is launching an investigation into California’s beleaguered multi-billion-dollar high-speed rail project. Transportation…

Ireland OwensFeb 21, 20253 min read

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The Trump administration’s Department of Transportation (DOT) announced on Thursday that it is launching an investigation into California’s beleaguered multi-billion-dollar high-speed rail project.

Transportation Secretary Sean Duffy is spearheading a probe into the California High-Speed Rail Authority (CHSRA) to determine whether “roughly $4 billion in taxpayer money” should remain committed to a proposed project to build a high-speed rail system in California’s Central Valley, according to a press release. Notably, the project has been plagued with various logistical hurdles for years.

“Given the red flags raised about this project, FRA will investigate the delays and cost overruns through a compliance and performance review,” Duffy wrote in the press release.

The CHSRA was established in 1996 to oversee the buildout of a high-speed railway in California, but the effort has been marred by massive slowdowns. The blue state’s rail system project was supposed to have a segment in the California Central Valley between Merced and Bakersfield completed by 2020.

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Notably, the effort is also on track to become severely over budget, as it was initially estimated to cost $33 billion, but is now projected to cost $106 billion.

“For too long, taxpayers have subsidized the massively over-budget and delayed California High-Speed Rail project,” Duffy said in the press release. “President Trump is right that this project is in dire need of an investigation. That is why I am directing my staff to review and determine whether the CHSRA has followed through on the commitments it made to receive billions of dollars in federal funding.”

“If not, I will have to consider whether that money could be given to deserving infrastructure projects elsewhere in the United States,” Duffy added.

“We welcome this investigation and the opportunity to work with our federal partners. With multiple independent federal and state audits completed, every dollar is accounted for, and we stand by the progress and impact of this project,” CHSRA CEO Ian Choudri said in a statement shared with the Daily Caller News Foundation. “California’s high-speed rail is 171 miles under active construction, with over 50 major structures completed, 14,700 jobs created, and more than 880 small businesses engaged. This investment has already generated $22 billion in economic impact, primarily benefiting the Central Valley.”

The DOT did not immediately respond to a request for comment from the DCNF.

Editors note: This article has been updated to include comment from the CHSRA.

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