The Trump administration has launched an investigation into California’s high-speed rail project in what could be the first step in clawing back the $4 billion promised by the Biden administration to build out the first section of the line, from Merced to Bakersfield.

President Donald Trump canceled nearly $1 billion in federal funding for the high-speed rail project in 2019, during his first term. The Biden administration later restored the funding and, in December 2023, allocated $3.3 billion more.

While U.S. Transportation Secretary Sean Duffy questioned the cross-state high-speed rail project, he praised the Las Vegas-to-Los Angeles effort.

The transportation secretary, Sean Duffy, said the government would conduct a “compliance review” on a $3.1 billion grant, potentially threatening the viability of the troubled project.

Duffy, speaking at Union Station in Los Angeles on Thursday morning, said the Federal Railroad Administration will review the rail project and its leadership.

USA: 'With multiple independent federal and state audits completed, every dollar is accounted for, and we stand by the progress and impact of this project', California High-Speed Rail Authority CEO Ian Choudri said after recently appointed US Transportation Secretary Sean Duffy announced a review of federal

Secretary of Transportation Sean Duffy said the California high-speed rail project will continue to cost taxpayers billions of dollars with no definitive timeline for completion.