Feds Say California Bullet Train Has 'No Viable Path', Threaten To Pull $4 Billion

The California High-Speed Rail Authority (CHSRA) is in default of federal grant agreements and may lose over $4 billion in funding. A report by the Federal Railroad Administration (FRA) accuses CHSRA of chronic mismanagement, unrealistic projections, and failure to meet key obligations. The FRA concluded that the bullet train has no viable path to finish the project's first operational segment by 2033. The FRA stated that it intends to terminate two grants totaling roughly $4 billion unless California responds with a satisfactory corrective plan. The FRA's letter outlines nine key findings, including a $7 billion funding gap, missed procurement deadlines, and overrepresented ridership forecasts. The FRA called the rail project "a story of broken promises and of waste of Federal taxpayer dollars." Transportation Secretary Sean Duffy said the report justifies reprogramming the funds to other projects. The FRA report found that CHSRA has not yet laid a single mile of high-speed rail track, despite over $6.9 billion in total federal funding since 2009. CHSRA has already spent about $1.6 billion on change orders over the past two years and still faces legal disputes and procurement delays. The FRA may redirect unspent funds from the grants to other infrastructure projects and is not currently seeking repayment of the funds already used.