California High-Speed Rail Faces Funding Review Amid Soaring Costs

The Trump administration announced a review of $4 billion allocated to California's High-Speed Rail project due to rising costs and delays. The project's funding issues and soaring expenses, now projected between $89 billion and $128 billion, have drawn strong criticism. The Transportation Department will assess potential reallocation of funds.

The Trump administration has launched a review to determine whether to withdraw $4 billion granted to California's High-Speed Rail project, initially approved by voters in 2008 for $10 billion amid escalating costs. Under former President Joe Biden's term, the project was awarded $4 billion by the Transportation Department.

Originally expected to cost approximately $40 billion, the project's expenses have surged to between $89 billion and $128 billion. The California High-Speed Rail Authority, led by CEO Ian Choudri, welcomes the investigation, stating that every dollar is accounted for with numerous audits completed, reflecting progress with construction and job creation.

Transportation Secretary Sean Duffy announced that the Federal Railroad Administration would conduct the review to assess the project's feasibility. If deemed unsuitable, funds may be redirected to other infrastructure projects. Separately, Duffy commended the $12 billion Brightline West project connecting Las Vegas to Southern California, eyed for completion by the 2028 Olympics.

(With inputs from agencies.)