Train wreck. (Photo: public domain)
Trump’s Transportation Secretary Releases Report Exposing No Viable Path Forward for California’s High-Speed Rail Boondoggle
Report identifies years of mismanagement, broken promises, and wasted federal taxpayer dollars
By Katy Grimes, June 4, 2025 10:00 am
The U.S. Department of Transportation just released a report Wednesday revealing that California’s High-Speed Rail project is in default of its federal grant agreements and has no viable path to completion – and not a moment too soon as the California Senate just approved yet another study on economic opportunities along the corridor of the California high-speed rail project, for $700,000. The high speed consultants attached to this boondoggle are the only people in California benefitting from the scheme.
As of June 2025, the total cost of the High-Speed Rail project hovers between $128 billion to $135 billion, with another $10.2-$14.2 billion likely to be tacked on soon, the Globe reported Tuesday.
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.
The DOT has given the state until mid-July to respond before the administration moves to terminate the grants. You can find a full copy of the letter and report, here.
We are going to let the the press statement from the DOT speak for itself:
U.S. Transportation Secretary Sean P. Duffy today released the Federal Railroad Administration (FRA) Compliance Review Report finding that the California High-Speed Rail Authority (CHSRA)’s high speed rail project is in default of the terms of its federal grant awards. The detailed report, which is over 300 pages, contains 9 key findings including missed deadlines, budget shortfalls, and overrepresentation of projected ridership. The two grants total roughly $4 billion in taxpayer money. As the letter notes, CHSRA has up to 37 days to respond, after which the grants could be terminated.
In a letter to CHSRA’s CEO, Ian Choudri, the FRA noted its report identified a trail of project delays, mismanagement, waste, and skyrocketing costs. The project has received approximately $6.9 billion in federal dollars in roughly fifteen years but has not laid a single high-speed track. Even with continued federal support, the project is far short of the funding needed to finish just a fraction of the track.
“I promised the American people we would be good stewards of their hard-earned tax dollars. This report exposes a cold, hard truth: CHSRA has no viable path to complete this project on time or on budget. CHSRA is on notice — If they can’t deliver on their end of the deal, it could soon be time for these funds to flow to other projects that can achieve President Trump’s vision of building great, big, beautiful things again,” said U.S. Transportation Secretary Sean P. Duffy. “Our country deserves high-speed rail that makes us proud – not boondoogle trains to nowhere.”
Please find a copy of the full letter and full report HERE.
ADDITIONAL INFORMATION:
In February, Secretary Duffy announced that USDOT would be launching an investigation into the CHSRA’s high-speed rail project and reviewing two grants awarded to the project: a $929 million Cooperative Agreement from 2010 and a $3.07 billion Cooperative Agreement from last year.
Under the Secretary’s direction, FRA conducted a detailed review of CHSRA’s compliance with federal grant agreements related to over $4 billion in funding. As part of its investigation, the FRA has contacted state oversight entities, visited construction sites, conducted a risk analysis, met with CHSRA officials, and reviewed several thousand documents.
FRA’s report is 310 pages, inclusive of supporting attachments, and contains 9 key findings:
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- CHSRA has executed numerous change orders and will likely have many more change orders in the near future to account for contractor expenses as a result of project delays.
- CHSRA has already missed its deadline for finalizing its rolling stock procurement.
- CHSRA has at least a $7 billion funding gap to complete the EOS, with no credible plan to secure additional funds.
- CHSRA does not have a viable path to complete the EOS by 2033 per its commitment in the FY10 Agreement and the FSP Agreement.
- CHSRA relies on volatile non-federal funding sources, which present significant project risk.
- CHSRA lacks time and money to electrify the EOS by 2033.
- CHSRA’s budget contingency is inadequate to cover anticipated contractor delay claims.
- CHSRA has overrepresented its ridership projections for the EOS substantially.
- CHSRA lacks the capacity to deliver the EOS by 2033.
Find excerpts from the report below:
Given CHSRA’s past performance, including substantial change orders, numerous contractor delay claims, protracted third-party arrangements, failure to account adequately for project risk, and lack of a credible plan to close the $7 billion funding gap, CHSRA is not likely to complete the Early Operating Segment (EOS) by 2033. In executing the FSP Agreement and reobligating the FY10 Agreement, FRA relied on CHSRA’s representations, which were included as commitments in the funding agreements, that CHSRA would deliver the EOS by 2033.
To secure substantial Federal funding, CHSRA represented that it could connect major metropolitan cities in California, but can now only deliver a system that is reduced substantially and delayed significantly, which may connect two random endpoints.
As such, CHSRA’s inability to deliver the EOS by 2033 renders the CHSR Project inconsistent with the goals of the HSIPR Program and constitutes a Project Material Change under the FSP Agreement. These findings support a conclusion that CHSRA is in default under the FSP Agreement and the CHSR Project no longer effectuates the goals of the funding programs, which may give rise to an action under the funding agreements, which could include termination.
Similarly, in 2008, the CHSR System was represented as a two-phase visionary system connecting Los Angeles to San Francisco, CA, and later north to Sacramento, CA, and south to San Diego, CA. Since then, the project footprint has been dramatically reduced from an 800-mile segment to a 171-mile segment to the current vision—119-miles. Despite substantial Federal support and funding, CHSRA does not have the capacity to deliver the full CHSR System. This 2025 compliance review demonstrates that CHSRA has not learned from its mistakes and mismanagement and has therefore failed to create an organization capable of effectively and efficiently managing project delivery. Despite the substantial scope reduction, the CHSR Project still continues to face numerous delays and cost overruns. At this rate, CHSRA will never
complete the CHSR System. Further, CHSRA has not acted in good faith in making representations to FRA regarding its ability complete the EOS with a reasonable budget and schedule. This not only gives rise to the conditions creating default under the agreement, but also raises a reasonable question about whether continued Federal investment in the CHSR System is a prudent use of taxpayer dollars.
“Commonsense has prevailed, and I commend the U.S. Department of Transportation for taking action and ending the funding,” said Senator Tony Strickland (R-Huntington Beach). “As vice chair of the Senate Transportation Committee, I urge legislative Democrats once again to have a serious discussion on how we can pull the plug on this mismanaged project. Let’s stop wasting California’s hard-earned taxpayer dollars and put that money toward a better use for all Californians, such as lowering the gas tax, funding Proposition 36, or investing in shovel-ready projects to start.”
Proposition 1A, $9 billion in bonds for high-speed rail, included numerous mandates, none of which can be legally bypassed on the way to building the massive train system.
Re-read my 2012 article, which lays out all of the Prop 1A mandates… and you’ll see that Secretary Duffy is right on.
If the Commiefornia economy was as big as Noisome says it is then the state should be able to finance the train from pocket change to speak figuratively.
The original Ballot Measure was guile at best and reeked of failure yet my Fellow Californians passed it, barely, as well as the Stem Cell Research bill which will cost State Taxpayers 12 Billion in the end, but you never hear about it. My fellow California Voters just do not pay much attention to what they vote for. Both of these are areas Government has no business.
When do we stop calling this a train? Or a rail project?
It’s none of those. It’s a FRAUD scheme. And that’s what it needs to be called going forward.
Images of the nonexistent.
Because this was likely a con job slush fund dirty fraudulent payout from the beginning, with no intent to actually build rail of any kind, it’s a good thing (no celebrations, though, only relief) that the Trump Admin will no longer fund it. Maybe can we please please get to the bottom of this once and for all, with audits that tell us the fate of every dime, for the sake of not only the CA taxpayer but the U.S. taxpayer too? What a mess, and I well remember Katy Grimes coverage of this so many years ago now, alongside the constant hope that this ridiculous project would be pulled, that it would finally be shut down. Never happened. Ah sweet California memories of waste and corruption.
Remember “The Big Dig” in Boston? Seems to me that was the poster child for “boondoggle” until now. Even THAT abomination was finally completed, I believe, wasn’t it? – in spite of all the dirty handouts along the way. Who would have thought our own Train to Nowhere At All would be an even bigger money hole to the center of the earth? But when you crooks never intended to build the dang train in the first place this is the result…. SEVENTEEN YEARS LATER
It would be a great if an army of auditors were unleashed to find out how all of our hard earned taxpayer money was squandered and then try to claw back some of those funds from the criminal Democrat thug mafia and their cronies. Maybe the assets and the lavish estates of former Gov. Jerry “Moonbeam” Brown and Gov. Gavin “Hair-gel Hitler” Newsom, and other top Democrats who profited from the grift and graft of this boondoggle should be seized as restitution? When can only dream of that happening?
Works for me, TJ! If only.
The only thing missing is Tony Soprano’s crew sitting around earning “union scale” yucking it up around a fire roasting marshmallows!
No kidding.
Yes, Showandtell. “Big Dig” planning started in the 1970s and the project was finally completed in 2007:
“The Big Dig was a massive infrastructure project in Boston to reroute Interstate 93 from an elevated highway into a 3.5-mile tunnel, the Ted Williams Tunnel, and connect it to other major roads and bridges, running from the 1980s to 2007. It aimed to reduce traffic congestion, improve access to Logan Airport, and reclaim land for public use, but it became infamous for controversies.
Key Issues:
Cost Overruns: Initially budgeted at $2.8 billion, the final cost ballooned to over $14.6 billion (some estimates cite $22 billion with interest), making it one of the most expensive public works projects in U.S. history. Poor cost estimates, mismanagement, and unanticipated challenges drove the escalation.
Construction Delays: Planned for completion in 1998, the project dragged on until 2007 due to complex engineering issues, contractor disputes, and mismanagement.
Quality and Safety Failures:
Leaky Tunnels: The tunnel system suffered from persistent leaks, with over 400 documented issues by 2004, due to substandard materials and poor oversight.
Ceiling Collapse: In 2006, a fatal incident occurred when concrete ceiling panels in the I-90 connector tunnel collapsed, killing a motorist. Investigations revealed faulty epoxy bolts and inadequate inspections, leading to lawsuits and public outrage.
Corruption and Fraud: Several contractors were implicated in fraud, including using substandard concrete and falsifying records. Bechtel/Parsons Brinckerhoff, the main contractor, faced scrutiny for mismanagement. Legal settlements cost hundreds of millions.
Environmental and Community Impact: Construction disrupted neighborhoods, businesses, and traffic for decades. Mitigation efforts, like noise and dust control, were often inadequate, angering residents.
Outcomes:
Positive: The project reduced downtown Boston traffic, improved airport access, and created the Rose Kennedy Greenway, a 1.5-mile park system. It’s credited with revitalizing parts of the city.
Negative: The financial burden, safety scandals, and public distrust left a mixed legacy. Massachusetts taxpayers faced decades of debt, and the project became a cautionary tale for large-scale infrastructure.”
https://en.wikipedia.org/wiki/Big_Dig
Thank you for posting this, Raymond.
Thirty-ish years beats our own disastrous project, so Boston is still ahead in boondoggle-ism. But maybe not if, because it was eventually finished, corruption and obscene expense notwithstanding, it shows they actually meant to build it in the first place. That’s questionable for the Train to Nowhere, which may have been intended only as a slush fund from the beginning. In any case, if ever finished, the Slow Train will likely be obsolete, or unaffordable to ride, or take too long compared with other transport, etc., and thus will require massive taxpayer-funded subsidies forever.
The lesson remains, though: Voters, don’t ever give the thumbs-up to these pie-in-the-sky projects that are unnecessary and ridiculous on their face! Especially in Dem states and cities that have HORRIBLE leadership.
Bottom line: the DEI and Affirmative Action middle and upper management morons do not have the skill to put an IKEA bed together. Diversity builds nothing but debt.
On the bright side the unions still get to lick up public funds by tearing it all down and grinding the concrete up for sorely needed road base gravel!
The $700 million for consultants to determine economic opportunities is nothing more than grifters emptying the vault knowing the money is about to dry up. By the way, shouldn’t the assessment of economic opportunities have occurred before the project started?
We need drone footage of this thing from one end to the other. It would blow your mind how much dirt they’ve moved and how much concrete and steel they’ve used. Steve Hilton could have some fun narrating the drone footage.
Most of the construction (except for some of the work in Fresno along Highway 99) is out of the view of the majority of voters here in California. If this had been a sincere project, it would have remained in the metro areas so a majority of Californians could have seen progress firsthand. If you live in the Los Angeles area or the Bay area this project is out of sight. With the Trump administration pulling the funding the work that has been done will become a monument to sheer stupidity.
So let it be written, so let it be done!
Rameses II
Let’s cut to the chase. Put out a “request for proposal” to China for revision and completion of the original plan. Allow them full use of eminent domain and access to prison labor and a two-year completion time. Mission accomplished.
The Chinese would thin the concrete cement and use hardware that’s either too weak or prone to rust/fail and it would fall apart within a couple of years….
But Newsom would get paid off nicely for his “Market development fee”….