Unleash Prosperity senior associate Wendell Cox discusses the Trump administration pulling $4 billion in federal funding for California’s high-speed rail project in ‘The Bottom Line.’
California dropped its lawsuit against the Trump administration after pulling nearly $4 billion in federal funding for a high-speed rail project.
Court records show that California Attorney General Rob Bonta’s office filed a notice on Dec. 23 voluntarily dismissed the lawsuit without prejudice on behalf of the California High-Speed Rail Authority (CHSRA), which had been seeking to have state funding reinstated.
“This action reflects the State’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in the development of high-speed rail in California,” said a spokesperson for the authority. in the statement in The Sacramento Bee.
“The Federal Railroad Administration has stated that all work performed by the Authority – whether performed as part of cooperative agreements or otherwise – remains ‘at risk’ and may not receive funding,” said a spokesperson.
HIGH SPEED JAM IS NOT JUST A CALIFORNIA BOONDOGGLE
Work continues on the California High-Speed Rail Hanford Viaduct in Hanford, Calif., Tuesday, Jan. 29, 2024. (Robert Gauthier/Los Angeles Times via Getty Images/Getty Images)
Transportation Secretary Sean Duffy announced in July that he would pull the plug on the long-delayed project, calling it a “boondoggle.”
“This is California’s fault. Governor Newsom and fellow Democrats have allowed this waste for years. Federal dollars are not a blank check – they come with a promise to deliver results. After more than a decade of failure, CHSRA’s mismanagement and incompetence has proven that it cannot build its train somewhere on time or on budget,” said Duffy.
President Donald Trump echoed Duffy’s words at the time, calling the project “a high-speed train that will never get anywhere.”
In a book to CHSRA, the Federal Railroad Administration said it was pulling federal funding, nearly $4 billion in bonds, after concluding the project could not be delivered as promised.
IT’S TIME FOR NEWSOM TO PUT THE BRAKES ON CALIFORNIA’S $128 BILLION GHOST TRAIN
Work continues on the California High-Speed Rail Hanford Viaduct in Hanford, Calif., Tuesday, Jan. 29, 2024. (Robert Gauthier/Los Angeles Times via Getty Images/Getty Images)
The agency cited mounting delays and ballooning costs, including major change orders, saying huge amounts of the agency’s money had been wasted despite authorities failing to meet milestones.
CHSRA launched a formal process on Dec. 19 to attract private investors and developers in the summer of 2026 as part of efforts to deliver the high-speed rail project “quickly, smartly and economically.”
“Interest from the private sector in investing in California’s high-speed rail project is strong and continues to grow,” said Ian Choudri, CEO of CHSRA.
FOX Business Correspondent Max Gorden discusses efforts by California leaders to build a high-speed rail system in ‘Varney & Co.’
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“Today’s purchase formalizes efforts to engage with private investors and developers, with the common goal of bringing California’s reform plan quickly, smartly, and economically,” he said. “By leveraging private sector innovation and best practices against strong, sustainable funding, we can increase the value of California’s investment and accelerate the delivery of high-speed infrastructure across the state.”
In a Press releaseCHSRA said 171 miles of work are still being designed and built between Merced and Bakersfield, with nearly 80 miles of freeway completed and dozens of major buildings fully completed.
