Trump pulls rail funding for California, Newsom vows to keep laying track


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Summary

Federal funding pulled

President Donald Trump announced that he is pulling federal funding from a California railroad project.

Newsom responds

Gov. Gavin Newsom responded saying all options are now on the table as the Trump administration has “illegally terminated” grant agreements.

Project's plan

California's high-speed rail project aims to connect Los Angeles and San Francisco via the Central Valley with $4 billion in federal grants, but the estimated cost has increased to $128 billion from an original estimate of $33 billion.


Full story

The long-running feud between President Donald Trump and California Gov. Gavin Newsom has a new battleground: high-speed rail. On Wednesday, July 16, Trump took to Truth Social to slam the Golden State’s rail project, the governor and what he insists is a waste of taxpayer dollars. 

The rail line is planned to run through the Central Valley, ultimately connecting Los Angeles to San Francisco.

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Federal grants, totaling about $4 billion, were approved during the Obama and Biden administrations, dating back to 2009. But in a letter sent in June, the U.S. Department of Transportation informed California that the Federal Railroad Administration was terminating the funding agreement.

The DOT cited missed deadlines, budget shortfalls and incorrect estimates of expected ridership. According to Politico, the project cost has now ballooned to $128 billion — up from an original estimate of $33 billion.

Trump blasts rail project 

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California’s high-speed rail project, which was originally expected to cost $33 billion, now has a price tag of nearly $130 billion.

In his post on Truth Social, Trump wrote:

“I am thrilled to announce that I have officially freed you from funding California’s disastrously overpriced, ‘HIGH SPEED TRAIN TO NOWHERE.’ This boondoggle, led by the incompetent Governor of California, Gavin Newscum, has cost Taxpayers Hundreds of Billions of Dollars, and we have received NOTHING in return except Cost Overruns. The Railroad we were promised still does not exist, and never will.”

Newsom was quick to respond, accusing the Trump administration of  “illegally” canceling the funding. 

Newsom said the project is entering the track-laying phase, spanning more than 170 miles with the building of at least 50 rail structures, including bridges and viaducts. He added that ridership is expected to begin sometime between 2030 and 2033.

In a sharply worded statement, Newsom wrote:

“Trump wants to hand China the future and abandon the Central Valley. We won’t let him. With projects like the Texas high-speed rail failing to take off, we are miles ahead of others … and building America’s only high-speed rail. California is putting all options on the table to fight this illegal action.” 

Newsom added that high-speed rail is a key part of his agenda for job creation and infrastructure investment in California. 

A history of clashes

This is the latest flashpoint in a turbulent relationship between Trump and Newsom.

Last month, Trump deployed hundreds of California National Guard members and U.S. Marines to Los Angeles during protests over immigration enforcement. Newsom challenged the move in court, but a federal appeals court sided with the president, allowing the deployment to continue. On Tuesday, July 15, Trump released about 2,000 National Guard members whom he had previously deployed.

Earlier this month, Newsom visited South Carolina, an early 2028 presidential primary state, to rally Democrats ahead of the 2026 midterms — sparking speculation that he’s eyeing a 2028 presidential run.

Jason Morrell (Morning Managing Editor), Shianne DeLeon (Video Editor), and Devin Pavlou (Digital Producer) contributed to this report.
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Why this story matters

The ongoing dispute between President Trump and Governor Gavin Newsom over California's high-speed rail project highlights federal-state tensions, infrastructure challenges and broader debates over government spending and policy priorities.

Federal-state conflict

Disagreements between the federal government and state authorities, as shown by the termination of federal funding and legal challenges, raise questions about state autonomy and the balance of power.

Infrastructure and investment

The future of major infrastructure projects like California's high-speed rail has implications for transportation, economic development and job creation, especially as costs rise and timelines shift.

Political rivalry

The personal and political feud between President Trump and Governor Newsom shapes public debates, affects policy decisions and may influence broader political ambitions and alignments.

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Synthesized coverage insights across 83 media outlets

Behind the numbers

Across sources, reports show California's high-speed rail project was originally expected to cost $33 billion and be completed by 2020. Current cost estimates range from $89 billion to $135 billion, with only portions under construction and a completion date for the Central Valley segment now set for 2033. Roughly a quarter of funding was federal, the remainder state-raised.

Community reaction

Local reactions are mixed. Some California lawmakers and residents, even among Democrats, question the project's cost and management, describing spending as irresponsible. Others, particularly in the Central Valley where construction and associated jobs are concentrated, see the project as vital for regional economic development and modernization, expressing disappointment with the funding cut.

Context corner

The California high-speed rail project, approved by voters in 2008, was envisioned to rapidly connect major cities in the state. Over time, it has faced escalating costs, legal challenges and political debates, reflecting broader American struggles with large infrastructure projects, regulatory hurdles and shifting political priorities between state and federal leadership.

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Certified balanced reporting

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Bias comparison

  • Media outlets on the left frame the Trump administration’s revocation of $4 billion federal funding for California’s high-speed rail as politically motivated, unjust, and harmful to job creation and green infrastructure, using terms like “pulls” to suggest abrupt damage.
  • Not enough unique coverage from media outlets in the center to provide a bias comparison.
  • Media outlets on the right deploy emotionally charged language — “Train to Nowhere,” “boondoggle,” and “incompetent governor” — to vilify the project and Democratic leaders, casting the funding cut as a necessary victory against waste and corruption.

Media landscape

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83 total sources

Key points from the Left

  • The Trump administration revoked $4 billion in federal funding for California's high-speed rail project, increasing uncertainty about its completion timeline.
  • California officials are focused on building a 119-mile stretch of rail by 2033, despite the funding loss.
  • Democratic Gov. Gavin Newsom stated the state will keep "all options on the table" to contest the funding revocation.
  • Drew Feeley from the Federal Railroad Administration called the project a "story of broken promises" due to budget shortfalls and missed deadlines.

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Key points from the Center

  • On Wednesday, the Trump administration announced it would withdraw $4 billion in federal support previously allocated to California’s high-speed rail initiative, citing an unfeasible plan to complete the project.
  • This funding cut followed a 315-page Federal Railroad Administration report highlighting missed deadlines, budget overruns, and low ridership projections, prompting earlier warnings in June.
  • Initially approved by voters in 2008 with a $10 billion budget, the project sought to establish high-speed rail service between Northern and Southern California by 2020; however, rising expenses and setbacks have shifted the focus to a reduced 119-mile stretch within the Central Valley.
  • President Donald Trump called it the "train to nowhere" and the "worst-managed project" he's ever seen, while Transportation Secretary Duffy said, "It’s time for this boondoggle to die," blaming state officials for waste.
  • Gov. Newsom condemned the funding withdrawal as illegal and pledged to fight, asserting that California is 'miles ahead' in building America's only high-speed rail amid ongoing construction progress.

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Key points from the Right

  • President Donald Trump announced the cancellation of $4 billion in federal funding for California's high-speed rail project, claiming it is a "boondoggle" and criticizing Gov. Gavin Newsom's management of the project.
  • Transportation Secretary Sean Duffy confirmed the termination of funds due to the California High-Speed Rail Authority's failure to meet commitments made in a 2010 agreement, leading to the decision to end federal funding.
  • The project has seen costs balloon from an initial estimate of $33 billion to $135 billion over 16 years without a single mile of track laid, according to Duffy.
  • Newsom indicated that California may take legal action to challenge the termination of funds, asserting that they are actively building parts of the rail project despite the administration's claims.

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