The California High-Speed Rail Authority is confronting a $6.5 billion funding gap to complete the initial 171-mile segment between Bakersfield and Merced, according to a Feb. 3 report from the state’s Office of the Inspector General (OIG). The report also warned that the project is “increasingly unlikely” to meet its target completion date of 2033.

In addition to financial concerns, the project may be subject to a federal investigation. Former President Donald Trump announced on Tuesday that he would launch an inquiry into the high-speed rail initiative. “The train that’s being built between Los Angeles and San Francisco is the worst-managed project I think I’ve ever seen,” Trump told reporters.

Funding Shortfalls and Schedule Delays

California voters originally approved the ambitious high-speed rail project in 2008 through a bond measure designed to help fund construction. Since then, progress has been slow, and costs have escalated. A California High-Speed Rail Authority spokesperson stated that 171 miles of the project are currently under design and active construction.

“Of approximately $13 billion spent on the project, $10.5 billion have been funded exclusively by the State of California,” the spokesperson said in an email. The total estimated cost for the 171-mile line stands between $28.5 billion and $35.3 billion, per the authority’s 2024 business plan.

The authority committed nearly two years ago to beginning service along the Merced-Bakersfield line between 2030 and 2033. However, the OIG report pointed out that recent schedule modifications have already used a third of the contingency time built into the plan.

The authority also cited anticipated federal funding shortfalls as a major challenge. It had hoped to secure $8 billion from the 2021 infrastructure law but was awarded only $3.3 billion. The authority noted that Congress did not fully fund grant programs it was counting on for additional resources.

Political Challenges and Federal Investigation

Trump’s first term from 2017 to 2021 saw several setbacks for the California rail initiative. In 2019, his administration canceled a $929 million federal grant and sought to reclaim nearly $2.5 billion in federal funds that the project had already received.

Some Republican lawmakers have expressed support for other high-speed rail ventures, including the Texas Central project linking Dallas and Houston and Brightline West’s Las Vegas-Southern California route, which is currently under construction. However, transportation policy experts from law firm Holland & Knight suggest that cost-cutting measures under the current administration and Congress could put high-speed rail funding at risk nationwide.

Despite Trump’s recent comments, the California High-Speed Rail Authority remains steadfast in its commitment to the project. In a Feb. 4 post on X, the authority responded to criticism: “Ignore the noise. We’re busy building.”

Looking Ahead: What’s Next for the Project?

The high-speed rail initiative remains one of the most ambitious infrastructure projects in the U.S., but significant financial and political hurdles lie ahead. With ongoing construction, limited federal support, and mounting scrutiny, the authority must navigate these challenges to ensure the project remains viable.

Industry experts note that California’s project serves as a critical test case for high-speed rail in the U.S. If successful, it could pave the way for further expansion of high-speed rail networks nationwide. However, continued delays and financial concerns could fuel skepticism about large-scale rail investments in the country.

For now, the future of California’s high-speed rail depends on securing additional funding, overcoming political opposition, and addressing logistical challenges that have already caused major setbacks.

Originally reported by Dan Zukowski in Smartcities Dive.