California: Transportation Secretary Sean Duffy's report reveals nearly $7 billion spent on high-speed rail project that never happened

California faces a growing controversy following a report by U.S. Transportation Secretary Sean Duffy, which reveals that the California High-Speed Rail Authority (CHSRA) has spent nearly $7 billion in federal funds over 17 years without installing a single foot of track for its ambitious high-speed rail project.

In a comprehensive 310-page report, Duffy laid out a series of missed deadlines, cost overruns and management problems, threatening to withdraw up to $4 billion in federal grants if the CHSRA does not submit a viable plan before July 11.

On his X account, the transportation secretary, noted:

"California's high-speed rail has all the hallmarks of a boondoggle: 

16 billion dollars spent. 17 years have passed. No high-speed rail has been laid. We've put California on notice: if it can't deliver, U.S. taxpayers won't fund its train to anywhere."

The project, approved by voters in 2008 through a referendum, promised an 800-mile rail line connecting Sacramento to San Diego, with an initial budget of $33 billion and a 2020 completion date.

However, costs ballooned to $77.3 billion, forcing Governor Gavin Newsom to scale back the project in 2019 to a 275-kilometer segment between Merced and Bakersfield.

Even this trimmed version faces serious problems, with a $7 billion budget shortfall identified by the state rail authority's inspector general in February of this year, equivalent to federal funds already disbursed since 2010.

Along those lines, the acting administrator of the Federal Railroad Administration, Drew Feeley, highlighted in a recent letter that the CHSRA missed a September 2024 deadline for procuring rail cars, in addition to noting $1.6 billion in misspent funds due to changed orders.

These problems make it unlikely that the project will meet its new 2033 completion date. Duffy, who initiated a funding compliance review in February, sharply criticized the project's management, stating, "CHSRA does not have a viable path to complete this project on time and on budget."

Duffy's threat to redirect funds to other projects reflects President Trump's vision of prioritizing infrastructure initiatives that "make us proud."

For its part, the CHSRA, which requested an additional $8 billion from the 2021 infrastructure bill, now faces an ultimatum to justify its stewardship or risk losing federal support.