The Trump administration has canceled $4 billion in federal funding for California’s high-speed rail project, creating major hurdles for the state’s plan to connect San Francisco and Los Angeles with a bullet train. The U.S. Transportation Department confirmed the decision, raising questions about the project’s future.

President Donald Trump and Transportation Secretary Sean Duffy have criticized the rail as a “train to nowhere.” In a Truth Social post, Trump called it “overpriced, overregulated, and never delivered,” highlighting years of delays and escalating costs.

Approved by voters in 2008, the project was initially expected to be operational by now. However, costs have surged past $100 billion, and timelines have been repeatedly delayed. The California High-Speed Rail Authority is currently building a 119-mile segment between Bakersfield and Merced, targeting completion by 2033. Over 50 structures, including bridges and viaducts, have been constructed to enhance safety by separating rail lines from roadways.

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Federal funds accounted for nearly a quarter of the project’s budget, with the state relying on voter-approved bonds and its cap-and-trade program, which provides roughly $1 billion annually from the Greenhouse Gas Reduction Fund. Governor Gavin Newsom has proposed extending this program through 2045 and securing $1 billion yearly for the rail, though lawmakers have not yet approved this plan.

Rail authority CEO Ian Choudri called the funding cut “illegal,” asserting that the state has fulfilled all federal requirements, as verified by reviews as recent as February 2025. “Cancelling these grants without cause is wrong,” Choudri said, noting the project’s legally binding agreements. The authority is now seeking private investors, with a deadline for interest submissions set for the end of July.

Newsom pledged to challenge the decision, stating, “Trump wants to abandon the Central Valley and hand the future to China. We won’t let him.” The funding cut follows other Trump administration actions against California, including blocking a gas-powered car phase-out and threatening to withhold funds over transgender sports policies.

The project also faces criticism from within California. Drew Feeley, acting administrator of the Federal Railroad Administration, described it as a “story of broken promises” in a recent report, arguing the state lacks a clear plan to complete the Central Valley segment. Some California Democrats, including Assemblymember Rebecca Bauer-Kahan, have echoed concerns, with constituents labeling the project’s spending “irresponsible.”

As the rail authority prepares to release an updated funding plan this summer, California must navigate significant challenges to keep the bullet train on track without federal support.

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