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Train wreck. (Photo: public domain)

Democrats’ High Speed Rail Slush Fund Growing Again to $130+ Billion

Democrats’ Cap & Trade slush fund could deepen California’s affordability crisis

By Katy Grimes, September 16, 2025 2:46 am

When President Donald Trump announced in February he would be launching an investigation into the high cost of California High Speed Rail fulfilling a Department of Government Efficiency (DOGE) promise made late in 2024, many California taxpayers celebrated.

Originally estimated to cost $33 billion in 2008 with a San Francisco to Los Angeles line to open by 2028, the California high speed rail system ballooned to over $1oo billion. And Gov. Newsom also just approved another $20 billion for High-Speed Rail.

Lawmakers pushed a dubious 2012 revised business plan, in which the cost of the project was magically reduced to $68 billion from $98.6 billion, and an estimated partial completion somewhere in the late 2030’s.

Last year, the California High Speed Rail Authority (CHRSA) actually confirmed that the system still needed $100 billion to link up San Francisco and Los Angeles, so the $130 Billion current estimate can’t be accurate.

Even while Jerry Brown was still governor, the true cost of High Speed Rail was whispered to be closer to $350 billion… if it ever is actually fully built out.

In February, President Trump addressed the absurdity of the high cost of the plan and said it was mind-boggling, echoing decades of criticisms within California that the project has been nothing more than a boondoggle, the Globe reported.

“The train that’s being built between Los Angeles and San Francisco is the worst managed project I think I’ve ever seen,” Trump said. “It’s the worst managed project I think I’ve ever seen, and I’ve seen some of the worst. I read that every person who would ride the train could instead take a limousine back and forth, and you’d have hundreds of billions of dollars left over. It is the worst overrun that there has ever been in the history of our country.”

When questioned on Trump’s comments, the high speed rail authority responded on X, pointing out their progress – defending the indefensible.

Ignore the noise. We’re busy building,” read the post. “As we enter the track-laying phase, 171 miles are under active construction & we’ve already:  COMPLETED 50 major structures  COMPLETED 60 miles of guideway  COMPLETED full enviro clearance from SF to LA  CREATED 14,600 jobs.”

“We can’t go back. We just have to accept the responsibility of where we are, and that’s exactly what we are doing, said Arthur Sohikian, the High Speed Rail’s executive director.

Governor Gavin Newsom also deflected, pointing to the “thousands of jobs” the project has provided in the Central Valley. It’s curious how there are thousands of jobs, but there is no track, and we still don’t have a train, 17 years after the 2008 bond was passed.

In July, President Donald Trump cuts off federal funds for California’s disastrous, fraudulent, corrupt High Speed Rail, we posted on X, following his Truth Social announcement:

We’ve always said that California’s High Speed Rail is nothing more than a jobs program – especially with no tracks and no train cars, 16 years after Prop. 1A, the bond creating it was passed.

This Globe reporter has covered California’s High Speed train-to-nowhere since 2008, when Proposition 1A was originally passed by voters. Only 4 years into the boondoggle, in 2012 I reported:

As California politicians show more desperation to build any part of the California High-Speed Rail system in order to get their hands on $3.5 billion in federal stimulus money, the plan is looking more like a whack-a-mole game. But every hole that is plugged, every detail that is softened or tweaked, and every cost estimate that is changed causes a bigger problem. The cover-up is worse than the original crime.

It is important to remember that high-speed rail is not really about achieving sexy world-class transportation for the purpose of serious people moving. It’s just a pipeline project for grabbing big money. Because of the illegitimacy of the project’s intent, the mole could be permanently whacked, and leave California taxpayers holding the bill.

Once the “high speed” route was changed from San Francisco to Los Angeles to Bakersfield to Madera, we renamed the train system “The Conjugal Express” after the two prisons on either end of the route.

By 2014, the funding scheme was to shift $250 million in cap-and-trade funds to high-speed rail via the state budget. California’s cap-and-trade program places a “cap” on aggregate greenhouse gas emissions from businesses and utilities deemed “polluters” by the California Air Resources Board, which the CARB says are responsible for most of the state’s greenhouse gas emissions. The CARB devised the cap-and-trade system whereby it holds a quarterly auction program requiring selected California employers to bid significant amounts of money for the privilege of continuing to operate in the state and “pollute” — or be faced with closing their doors.

“This budget will outrageously rip off millions of dollars in cap-and-trade funds to build high-speed rail, throwing good money after bad,” said state Sen. Andy Vidak (R-Hanford), in 2014 in response to the cap-and-trade funding scheme.

Vidak even did a “whistle-stop-the-train” press campaign.

Sen. Vidak’s “whistle-stop-the-train” press campaign.

The U.S. Department of Transportation gave California until mid-July to respond before the administration moves to terminate the grants. So the California Legislature just flipped the bird at the Trump administration.

Senator Tony Strickland (R-Huntington Beach), has plenty to say about the fiscal irrationality.

“I came to Sacramento to Make California Golden Again, and that means fighting every day for safer communities, affordable living, and a government that works for the people—not against them.

“I said it in June and I’ll say it again: legislative Democrats live in ‘Bizarro World.’ Their idea of tackling affordability is extending the Cap-and-Trade program, a hidden tax that drives up costs on everything from gas to groceries. That’s not climate leadership. I call it economic sabotage.

“Families shouldn’t have to choose between affordability and ineffective climate promises, and I believe Californians deserve better.”

Sen. Strickland highlighted these notable pieces of legislation:

  • SB 840: Allocates $1 billion to the failing high-speed rail project and $3 million to create a new, unaccountable “Climate Bureau Agency” within the Office of Legislative Counsel.
  • AB 1207: Extends the Cap-and-Trade program to 2045, risking higher fuel and energy costs for working families.
  • SB 840: Allocates $1 billion slush fund for legislative Democrats’ pet projects and a $1 billion for the failed high-speed rail project.

“We cannot sacrifice economic stability and affordability for false climate promises that will only raise costs for those who can least afford it.

“These bills may sound noble, but they will deliver higher gas prices, which are predicted to be at $8 per gallon next year, soaring energy bills, and force refineries to shutter or flee California due to crushing compliance costs. This agenda will only deepen our state’s affordability crisis, costing jobs and threatening the livelihoods of hardworking families.”

Senator Strickland continued:

“According to a PPIC survey on ‘Californians and the Energy Transition,‘ 59% of respondents indicated that they are unwilling to pay more for electricity generated from renewable energy sources. Additionally, a report from the nonpartisan Legislative Analyst’s Office released in May warned that drivers could face higher gas prices due to the extension of the Cap & Trade program, potentially increasing prices by up to 74 cents per gallon. A typical California household consumes about 600 gallons of gasoline annually and may end up having to pay an extra $444 per year. When considering diesel and other fuels, the total additional cost could be around $700.”

In January 2025, California Congressman Kevin Kiley (R-CA) introduced a bill to eliminate federal funding for the failed California High-Speed Rail project citing “political incompetence,” and there being “no plausible scenario where the cost to federal or state taxpayers can be justified.”

Re-read my 2012 article, which lays out all of the Prop 1A mandates… and you’ll see that Secretary Duffy is right on.

California Democrats are out of control, and proved once again they don’t care about voters, taxpayers or their own constituents.

Stop voting for them.

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23 thoughts on “Democrats’ High Speed Rail Slush Fund Growing Again to $130+ Billion

  1. The “Money for useless jobs” high speed rail is the functional equivalent of the payola grift between politicians and their corrupt NGO friends. An historical counterpoint from not that long ago reminds us that the Empire State Building and the Golden Gate Bridge were both constructed under budget and ahead of schedule. Where are those Americans today?

  2. They’ll extract the money from real estate owners. The California Supreme Court ruled the taxpayers have no standing regarding legislative expenditures.

    z

  3. The Democrats stipulated only union workers can build the train. The unions give money to the Democrat’s campaigns for years and years as the train project drags on. See how that works?

    Corruption at its finest.

  4. It’s vitally important to keep that horse’s ass of an unfinished Train to Nowhere slush-fund slop-trough filled, right, Gov Gabbin’ Gavin, CA lawmakers and unelected CARB?
    And so they have.

    The unelected CARB bureaucrats and the illegitimately-elected super-majority DemMarxist legislature are (and have been), without question, stealing our money for decades and stashing it in slush funds to further their own destructive ends. And of course many of our LOCAL city and county electeds, as well as mountainous piles of unelected “non-profit” groups, phony commissions and committees, & etc. are also totally on board, obviously with dollar signs in their eyes and without a peep of objection against the state-created vehicle because, DUH, it benefits them and enables them to steal from the public.

    The phony thieving Green agenda has been going on IN EARNEST and without shame statewide and locally in CA (never mind nationwide) to stuff and fatten their cash cows for a good 20 years. I was there in person with two or three other citizen objectors in my city as the mayor and his friendlies, the Sierra Club and the town crazies conspired in whispers, under cover of Saving Mother Earth, (what fools they are) to recklessly dump our then-somewhat-affordable energy and fully, recklessly embrace an energy portfolio of ineffective, unreliable, and unaffordable renewables. Two decades later this has reached a critical mass of unaffordability to the point that solid citizens now have had for almost a year been looking at added fixed charges on their electricity and water bills meant to subsidize those who can’t or won’t pay their own utility bills.

    Those who have the power to address this “unsustainable” wreckage are clearly not seeking to fix this mess, or any mess, that has been created by them. They would rather stick their fingers in our eyes and smirk. Will something be done, or Fed intervention happen, before it’s too late, before the state of California inevitably collapses, economically and otherwise?

  5. “If California wants this boondoggle, they will pay for it themselves. Not one more red cent.” – This is what Sean Duffy and Donald Trump should say.

    1. Unfortunately, Bruiser, that’s exactly what is happening. The recent state budget allocates $1 billion per year for the next 20 years to financially support the train to nowhere that none of us will ever see or ride.

  6. Gavin Newscum is a lying, cheating,crooked, slimy snake-oil salesman. Never believe a word that comes out of that dirt-bags mouth.

    1. So is Greg Abbott. The taxes levied against my Rockwall County TX property have literally give through roof: Abbott has done absolutely nothing to halt the transfer of tax money to fund benefits to illegals, nothing!

  7. DT has removed the language referring to the CO2 scam. It was always a scam…my dad went to Antarctica many times from the late 60s to 2000 and IPCC conferences after that, all that stuff. He told me he thought the evidences was being ginned to generate funding for the University. Then it got turned into a weapon for Larry Fink. How many Red States have language about this nonsense. I would bet more than a few, just like Red States letting their entire education system be run by Democrats. I wish we could get more of these states to STEP UP while we try to stabilize the disaster going on in the California State Assembly. They could also form more “coalition of willing partners” between them.

  8. President Trump said it best: “I’ve watched a lot of stupid people build a lot of stupid things, but that’s the worst cost overrun I’ve ever seen.” It’s just another one of the criminal Democrat thug mafia’s money laundering schemes? Many of us agree with Katy Grimes that California Democrat politicians are out of control, and proved over and over again that they don’t care about voters, taxpayers or their own constituents. It’s got to be Democrat voter fraud that keeps them in office?

  9. “We can’t go back. We just have to accept the responsibility of where we are, and that’s exactly what we are doing, said Arthur Sohikian, the High Speed Rail’s executive director.”

    Sounds like Auntie Nancy’s pronunciation that they had to pass the bill to see what’s in it, right??? The corruption is STRONG in California, folks…

    And Katy’s admonition to “Stop Voting for them” (Democrats), doesn’t matter, because they can basically do whatever they want with voting, because they have changed the voting procedures from a day to a season, shifted to all vote-by-mail where there is no chain of command regarding the ballots issued, and ballots returned, and then there’s the voter-roll mismanagement issues, and if ALL THAT still doesn’t work, they have electronic voting systems that have security exploits baked into them, and insecure aspects of key systems and processes…

    Read all about it here : https://votingsystems.cdn.sos.ca.gov/vendors/dominion/dvs510staff-report.pdf

  10. As the democrat elitist oligarchs sit on their thrones in Sacramento (or at The French Laundry), and laugh at all us peons who pay the taxes, we need to remember that the Creator of everything in the universe is watching everything they do very closely. I find peace in knowing that is true without any doubts.

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