FRA Withdraws $175M from California HSR Projects

FRA withdraws $175M in funding for California high-speed rail projects, citing management concerns. Construction continues, despite the funding cuts.

FRA Withdraws $175M from California HSR Projects
September 7, 2025 2:48 am
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Introduction

The Federal Railroad Administration (FRA) has withdrawn more than USD 175 million in funding from four projects associated with California’s high-speed rail program, according to an announcement by U.S. Transportation Secretary Sean P. Duffy. This action follows the Department’s earlier termination of a USD 4 billion grant to the California High-Speed Rail Authority (CHSRA).

Background of Funding Withdrawal

The FRA’s decision impacts four projects linked to California’s high-speed rail program. The combined federal funds allocated to these projects amounted to approximately USD 175 million. Secretary Duffy stated the withdrawal reflects the Department’s commitment to redirecting funds to what he termed “well-managed projects” that can deliver tangible results.

Criticism and Project Status

California’s high-speed rail program has faced controversy. The initial plan aimed to establish a high-speed rail link between San Francisco and Los Angeles. The project has encountered delays, cost increases, and scope adjustments. Roughly USD 15 billion has been spent to date, with current estimates projecting a total cost of around USD 135 billion.

Departmental Actions

The FRA’s withdrawal of funds follows a July 2025 decision to cancel USD 4 billion in grants to CHSRA after a 315-page report raised concerns. One issue was the Authority’s inability to complete the Merced–Bakersfield section by 2033, as initially planned. The Department of Transportation has also instructed the FRA to review all obligated grants related to California’s high-speed rail development.

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Current Construction and Employment

Construction of the California high-speed rail line is ongoing despite the loss of federal support. Approximately 171 miles of the Merced and Bakersfield route are currently in design and construction. According to CHSRA, nearly 70 miles of guideway have been completed, along with 55 structures, with an additional 29 under construction across Madera, Fresno, Kings, and Tulare counties. The project has created over 15,600 jobs since construction began, with most positions filled by Central Valley residents. An average of 1,700 workers are active at construction sites daily.

Conclusion

The FRA has withdrawn over USD 175 million in funding from four California high-speed rail projects, following the termination of a larger USD 4 billion grant. The Department of Transportation is also reviewing all related grants. Construction continues on a 171-mile section, with significant employment generated.

Company Summary

California High-Speed Rail Authority (CHSRA): The organization responsible for the planning, construction, and operation of the California High-Speed Rail system.

Federal Railroad Administration (FRA): An agency within the U.S. Department of Transportation, responsible for overseeing and regulating the nation’s railroads.