On 16th July 2025, the Federal Railroad Administration (FRA) decided to cut around €3.45 billion (US$4 billion) in federal funding for the California high-speed rail (HSR) project. The USDOT justified this decision on the grounds of "mismanagement and incompetence" on the part of the California High-Speed Rail Authority (CHSRA). The California state government criticised the decision as illegal and announced countermeasures. Following a compliance review, the FRA had determined that the continuation of federal funding did not meet legal requirements. Despite 16 years and €12.9 billion in expenditure, the CHSRA has not yet completed a single HSR line. The FRA will now review other grants related to the project and examine possible claims for repayment.
