California's High-Speed Rail Struggle: Federal Funding Faces the Axe

The U.S. Transportation Department is canceling $175 million in funding for California's high-speed rail project, citing compliance issues. The project aimed to connect Los Angeles and San Francisco via a three-hour train ride, faces political challenges and increased costs, extending the project timeline to 2033.

The U.S. Transportation Department has announced the cancellation of $175 million in funding for California's high-speed rail project, intensifying a long-standing dispute between the Trump administration and Democratic Governor Gavin Newsom. This latest action follows a July decision to withdraw $4 billion in federal funding for the ambitious state transportation venture.

The cancellation affects several infrastructure components, including grade separation, overcrossings, and a planned high-speed rail station in Madera. California had sued the federal government, arguing the decision was unlawful. The state insists that federal support is crucial to overcome obstacles in completing a direct Los Angeles-to-San Francisco rail link.

Governor Newsom has criticized these moves as politically motivated, with funding terminations perceived as President Trump's retributive actions against California. Despite these setbacks and escalating budgetary costs from $33 billion to up to $128 billion, the California High-Speed Rail Authority remains committed to the project, anticipating service commencement by 2033.

(With inputs from agencies.)