Adam RollinsThe Federal Railroad Administration (FRA) has pulled $4 billion in unspent federal funding from California’s High Speed Rail project, plunging the future of the transformative public transit initiative into uncertainty.
The FRA based the decision on several causes targeting the project’s lack of progress and delays in construction. Since being kickstarted 16 years ago, the California High-Speed Rail Authority (CHSRA) has yet to officially lay tracks for the rail corridor, according to federal officials.
The authority released a report in February 2025 stating that a significant segment of the project would not be completed by the originally planned 2033 date. However, despite project delays, the CHSRA has made progress on railway infrastructure. To date, the authority has completed more than 60 miles of guideway and more than 50 major railway structures – including bridges, overpasses and viaducts. The CHSRA has also recently moved the project into the track-laying phase.
The FRA completed its own review of the project, compiling nine key finding indicating that the CHSRA would not be able to keep its federal obligations. FRA’s reasons include:
- CHSRA has made numerous change orders with more on the way to make up for contractor expenses caused by project delays.
- CHSRA has missed the deadline for finalizing its rolling stock procurement.
- There is a $7 billion funding gap to complete the Early Operating Segment (EOS).
- CHSRA does not have a plan to finish the EOS by 2033 per its agreements.
- CHSRA relies on non-federal funding sources, presenting project risk.
- CHSRA lacks the time and money needed to electrify the EOS by 2033.
- CHSRA’s budget contingency cannot cover anticipated contractor delay claims.
- CHSRA has substantially overrepresented its ridership projections.
- CHRSA lacks the capacity to deliver the EOS by 2033.
The FRA sent the authority a formal Notice of Proposed Determination to Terminate in early June. After receiving responses that failed to adequately address the agency’s concerns, the FRA determined to pull out the $4 billion in funding.
While the sudden retraction of funding will put a dampener on California’s efforts to build the nation’s first high-speed rail system, the project remains ongoing. The state has filed a lawsuit against the federal government’s retraction of funding and remains resolute that the project will continue — with or without federal funding.
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