Trump administration may rescind $4 billion for California High-Speed Rail project

A freight locomotive rolls across an intersection in Fresno, California. (Reuters/File)
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Updated 05 June 2025
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Trump administration may rescind $4 billion for California High-Speed Rail project

  • One key issue cited is that California has not identified $7 billion in additional funding needed to build an initial 171-mile segment between Merced and Bakersfield, California

WASHINGTON: The Trump administration said Wednesday there is no viable path forward for California’s High-Speed Rail project and warned it may rescind $4 billion in government funding in the coming weeks.
The US Transportation Department released a 315-page report from the Federal Railroad Administration that cited missed deadlines, budget shortfalls and questionable ridership projections. One key issue cited is that California has not identified $7 billion in additional funding needed to build an initial 171-mile segment between Merced and Bakersfield, California.
USDOT gave California until mid-July to respond and then the administration could terminate the grants. Trump said last month the US government would not pay for the project.
The FRA report Wednesday said California had “conned the taxpayer out of its $4 billion investment, with no viable plan to deliver even that partial segment on time.”
The California High-Speed Rail System is a planned two-phase 800-mile system with speeds of up to 220 miles per hour that aims to connect San Francisco to Los Angeles/Anaheim and in the second phase extend north to Sacramento and south to San Diego.
The California High-Speed Rail Authority said it strongly disagrees with the administration’s conclusions “which are misguided and do not reflect the substantial progress made to deliver high-speed rail in California.”
It noted California, Governor Gavin Newsom’s budget proposal before the legislature extends at least $1 billion per year in funding for the next 20 years “providing the necessary resources to complete the project’s initial operating segment.”
The authority noted in May there is active civil construction along 119 miles in the state’s Central Valley.
Voters approved $10 billion for the project in 2008 but the costs have risen sharply. The Transportation Department under former President Joe Biden awarded the project about $4 billion.
The entire San Francisco-to-Los Angeles project was initially supposed to be completed by 2020 for $33 billion but has now jumped from $89 billion to $128 billion.
In 2021, Biden restored a $929 million grant for California’s high-speed rail that Trump had revoked in 2019 after the Republican president called the project a “disaster.”


US ‘leading the fight’ against Southeast Asian scam compounds, FBI official says 

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US ‘leading the fight’ against Southeast Asian scam compounds, FBI official says 

BANGKOK: A senior ‌FBI official said on Tuesday that the United States was “committed to leading the fight” against multi-billion dollar ​Southeast Asian fraud factories targeting Americans.
Scott Schelble, Deputy Assistant Director of the FBI’s International Operations Division, was speaking at a press briefing after traveling to Thailand, Cambodia, and Vietnam, where he visited several scam centers.
“It is impossible to fully grasp the ‌magnitude of these operations ‌until you see ​them ‌yourself,” ⁠he ​said, referring ⁠to “industrial-scale” Chinese-led fraud factories that have proliferated across the region.
“Criminals should not believe that borders will protect them if they target Americans,” he said. “We know where you are and we are coming for you.”
* Chinese ⁠organized crime syndicates are targeting Americans with scams “every ‌day” through “sophisticated, well-resourced criminal ‌enterprises that exploit borders, ​technology, and vulnerable people ‌to generate enormous profits,” Schelble said.
* The ‌groups are “not bound by laws or geographical borders” and operate with “a degree of impunity because they take advantage of countries’ respective laws,” he said.
* The ‌FBI has deployed agents to work with Thai police on ⁠a joint anti-scam ⁠taskforce which has disrupted networks, identified victims, and targeted supporting financial infrastructure, Schelble said.
* The FBI has partnered with Cambodian police in the past and hopes to leverage previous success to cooperate on scam compounds, he said, adding that he also had “fruitful discussions” with Vietnam.
* Scam centers are a regional issue and require regional cooperation, Schelble said. “The key ​is to make ​each area an inhospitable place for these compounds to operate.”