The Trump administration has decided to cancel $175 million in federal grants earmarked for California’s high-speed rail project. U.S. Transportation Secretary Sean Duffy announced the decision on Wednesday, calling the project a “fantasy.” The cuts affect four major infrastructure projects, including the extension of track into downtown San Francisco and the final design of the Transbay Terminal rail in the South of Market area.
According to the U.S. Department of Transportation, these cuts are part of a broader effort to save taxpayers over $175 million. Secretary Duffy stated, “In twenty years, California has not been able to lay a single track of high-speed rail. The waste ends here.” The Federal Railroad Administration (FRA) will also review all existing grants related to the project.
The affected projects include the Le Grand overcrossing on the Merced extension, Southern San Jose grade separations on Monterey Road, the DTX final design for track and rail systems, and the Madera High-Speed Rail Station.
California Governor Gavin Newsom has vowed to continue the project despite the funding cuts, citing the state’s cap-and-trade program as a source of funding. The high-speed rail project, approved by voters in 2008, initially aimed to connect Los Angeles and San Francisco by 2020 at a cost of $33 billion. However, the cost has since ballooned to approximately $120 billion, with completion not expected until much later.
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