Federal Rail Agency redirects $2 billion from California high-speed rail to safety upgrades nationwide
The Federal Railroad Administration is moving roughly $2 billion of money once earmarked for California’s high-speed rail into safety and passenger-rail projects across the United States, with over $200 million slated for California improvements.
On Friday, Transportation Secretary Sean Duffy disclosed that the Federal Railroad Administration will allocate $5.3 billion to rail projects in 23 states, directing roughly $2 billion of the sum that the Trump administration says it "saved" by ending unspent federal support for California’s high-speed rail. The funds will support the removal of hazardous grade crossings, modernization of aging infrastructure, and the purchase of 43 Made-in-America Amtrak trainsets, along with a $140 million overhaul of 41 locomotives serving Midwest and Pacific routes.
California will obtain more than $200 million for initiatives such as a double-track segment on the LOSSAN Corridor, a grade-separation at Cherry Avenue in Shafter, and safety upgrades at Encinitas crossings. This shift follows a July 2025 FRA termination of about $4 billion in grants to the California High-Speed Rail Authority after it failed to meet federal grant obligations. While construction continues in the Central Valley, officials warn of a $9.5 billion funding gap that could halt the project by late 2027. The administration frames the move as a "Golden Age of Rail," emphasizing safety over what it calls a failed high-speed rail effort.
Why it matters
Redirecting billions to rail safety could cut crossing deaths and boost passenger service nationwide.
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