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US reviews the possibility of rescinding $4 billion in California grants for high-speed rail

The Trump Administration announced on Thursday that it will review the decision to rescind $4 billion in funding for California's High-Speed Rail Project.

The project was approved by voters in 2008 for $10 billion, but costs have increased dramatically and President Donald Trump is a harsh critic of the effort. Under former president Joe Biden, the Transportation Department awarded more than $3 billion to this project.

The initial estimate of the total project cost was $40 billion. However, that number has risen to $89 billion and $128 billion.

California High-Speed Rail Authority has not yet issued a statement.

Federal Railroad Administration announced that it was reviewing the funds for the California Central Valley segment between Merced to Bakersfield at the direction Transportation Secretary Sean Duffy.

The entire San Francisco-to-Los Angeles project was initially supposed to be completed by 2020 for $33 billion, USDOT said, but the Merced-to-Bakersfield segment alone will cost more than the original total, USDOT said.

Duffy stated that taxpayers had been subsidizing the California High-Speed Rail Project for far too long. The project was massively over-budget, and it has been delayed. If not, I'll have to decide whether the money can be used for other infrastructure projects in the United States that deserve it.

USDOT cited a report that the Merced-to-Bakersfield segment alone has a funding gap of at least $6.5 billion.

(source: Reuters)