California's High-Speed Rail Faces Federal Funding Struggle

The U.S. government has revoked $4 billion in funding for California's high-speed rail project due to rising costs and delays. California calls the decision illegal as the project faces a $128 billion budget with partial construction completed. The issue is part of a broader political conflict.

In a tug-of-war over transportation priorities, the U.S. Transportation Department has rescinded $4 billion in federal funding for California's ambitious high-speed rail project. The decision, announced by Secretary Sean Duffy, cites excessive costs and delays as reasons for pulling support from the embattled project.

Designed to whisk passengers between major California cities at speeds of up to 220 miles per hour, the rail project has been mired in controversy and financial setbacks. Originally budgeted at $33 billion, costs have ballooned to an estimated $128 billion. The project, which has not yet laid any tracks, highlights broader political divisions between the Trump administration and California over numerous policy disputes.

The California High-Speed Rail Authority, however, remains optimistic, emphasizing that the project is moving into the vital track-laying phase, with substantial job creation and progress in construction. The federal decision marks another challenge for the project, once heralded as a game-changer for American rail travel.

(With inputs from agencies.)