Pres. Donald J Trump at FII Priority in Miami, Feb. 19, 2025. (Photo: Ken Kurson for California Globe)
President Trump Confirms California’s High Speed Rail System Will No Longer Receive Any Federal Funds
‘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’
By Evan Symon, May 7, 2025 7:00 am
In a joint conference with newly elected Canadian Prime Minister Mark Carney on Tuesday, President Donald Trump said that the federal government would not put any more money towards the California High-Speed Rail system, all but ensuring further budgetary gaps for the controversial project.
Speaking from the White House, Trump added that spending on California’s high speed rail project was out of control and that the project, along with other state incidents like his Los Angeles wildfire response in January, would likely make Governor Gavin Newsom unelectable in 2028.
“That train is the worst cost overrun I’ve ever seen,” said Trump on Tuesday. “It’s, like, totally out of control. 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. This government is not going to pay. I told our very great new secretary of transportation — he’s doing a good job, Sean Duffy — I said we’re not going to pay for that thing.
“I would love [Newsom] to run for president. I’d love to see that, but I don’t think he’s going to be running because that one project alone — well, that, and the fires and a lot of other things — pretty much put him out of the race.”
Governor Newsom’s office swiftly responded to the remarks, going after some of Trump’s past failed projects and saying that there was no way they would stop now with so much infrastructure and jobs on the line.
“Hard pass on fiscal tips from the self-described ‘King of Debt’ who ran a steak company, a casino, and a global economy — all into the ground,” noted Newsom spokesperson Izzy Gardon in a statement. “With 50 major structures built, walking away now as we enter the track-laying phase would be reckless — wasting billions already invested and letting job-killers cede a generational infrastructure advantage to China.”
The latest spat between Trump, Newsom
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 has since ballooned to $128 billion, then $135 billion+, with an estimated partial completion somewhere in the late 2030’s. And last year, CHRSA actually confirmed that the system still needed $100 billion to link up San Francisco and Los Angeles. The true cost may also be much higher than anticipated, with some estimates during the Governorship of Jerry Brown putting that figure at around $350 billion. While the $13 billion already spent on the project has come through voter approved bonds and the cap-and-trade program, about a quarter has come from federal sources.
President Trump announced in February that he would be launching an investigation into CHSRA, fulfilling a promise his administration made to look into the system. Specifically, he noted that the high cost of the program was mind-boggling, echoing decades of criticisms within California that the project has been nothing more than a boondoggle. That promise came true a few weeks later, with Transportation Secretary Sean Duffy announcing a compliance review of funding for the CHRSA, with $4 billion of federal funding currently at stake for California. This was compounded in March by the California Legislative Analyst’s Office telling lawmakers that California High-Speed Rail needs $7 billion in funding by June 2026 or else the first Bakersfield to Merced leg of the system could be delayed further into the 2030’s, with costs rising as a result as well. Even worse for the CHRSA, the state is now out of bond money.
With an investigation into CHSRA funding still ongoing in Washington and Trump now vowing not to give them another cent, CHRSA will likely now have to be reliant on private funding. Last week, high speed rail authorities confirmed that private funding would be needed to fill the $7 billion-$11 billion funding gap with no federal money coming in and previously promised grants by the Biden administration being stopped by the Trump administration.
“In the ideal world, you can take the 500 miles, build it in your warehouse and then just drop it and everybody’s happy,” explained CHRSA CEO Ian Choudri last week. “But the programs are never built like that. You build incrementally and that’s what we’re doing right now. We are in talks with Gov. Gavin Newsom’s administration and state lawmakers on what will be needed to secure private investment. Without the private sector money the state may have to take out federal loans or issue new bonds.”
The high speed rail issue is only the latest in a series of issues between Newsom and Trump this week, with the two actually agreeing on foreign movie production tariffs and disagreeing on the reopening of Alcatraz in the San Francisco Bay as a federal prison.
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There’s a mountain range with the San Andreas Fault nearby just to the south that needs to be traversed. Who ever mentions this within the government?
” wasting billions already invested and letting job-killers cede a generational infrastructure advantage to China.”
What the hell does that mean? I knew BYD Motors (aka China) was looking forward to the electric vehicle mandate, but what is China building a competing train system in California?
Who wants to place bets as to WHERE THE ACTUAL TRAINS will be built, once the infrastructure (ever) gets built???
I’m placing MY bets on BYD… and I’ll also bet that the steel for the rails will ALSO be Chinese-sourced…..
Prove me wrong…
Has he never heard the phrase “Don’t throw good money after bad”?
I’m doing the Trump dance! 🙂
If the project were profitable, investors would be trampling each other to throw their money into the hat. As things are with democrat rule, they will spend train loads of money (pun intended) and accomplish little to nothing, or spend the money on other things then clamor for more money. There needs to be some subpoenas going out and people going jail for malfeasance.
that democratic rule funds all of you idiots in the red states. no more federal funding? okay we will take your federal funding away and secede! we actually don’t need the rest of you, and all of you idiots keep costing us our money. we contribute to the other states, the red states are vampires sucking other states money. how about your state becomes self sufficient or contributes money to the pot before you complain about anything.
Well, all the unions say it’s “important,” so it must be OK, right? (gmafb!)
“…saying that there was no way they would stop now with so much infrastructure and jobs on the line.”
Is this akin to Auntie Nancy’s pearls of wisdom where she famously once remarked that “We have to pass the bill to see what’s in it”???
The arrogance and absolute HUBRIS that this a-hole exhibits with his every utterance is enough to make one apoplectic….
SHUT IT DOWN, President Trump… CUT THE FINANCIAL HEAD OFF THESE FINANCIAL SNAKE DEMOCRATS!!!
where do you live? my guess is you’re in a state that wouldn’t exist without Californias money. consider that for a moment before you talk ish. self sufficiency for all, no more federal funding for states period.
I have it on good authority the taxpayers of Wyoming, Ohio and the rest of the 50 states, have zero interest to continue funding California Democrat vanity project failures.
Nor do they wish to bail out failed state government pension promises. Plan accordingly. .
Until we can right the hunting wrongs of Arnold S. (r), its a good time for the state to shore up its feable investment portfolios :
“Sierra Bullets Closes Asset Acquisition of Barnes Bullets.”
If Democrats think it is a good idea to build the train, then shut it down. Democrats have a 100% failure rate.
“Corporal Bowden” once expressed harsh words for those of us who oppose CAHSR.
Since then, the whole embarrassing moment has evaporated from the public record.
Dear Friends, Stonehenge II, or Diversion to Capitalism? At this point, we ought to have CAHSRA do Ch. 9, cancel burdensome contracts, liquidation plan, then keep infrastructure already built in public ownership like the Interstates, and build intermodal facilities, like UPRR’s Lathrop Intermodal Yard, in each County on the line. Then use high value freight revenue, TOFC & COFC, to offset losses sustained moving passengers; lower highway and bridge support maintenance, air pollution, traffic congestion, and highway accidents & deaths. See my Public Comments to CAHSRA. Joe Thompson TransLaw@PacBell.Net