Feds redirect billions from Gavin Newsom’s rail challenge

Billions of {dollars} pulled from California’s troubled high-speed rail challenge are being redirected to rail security upgrades and passenger prepare enhancements throughout the nation, together with greater than $200 million for tasks in California.

Transportation Secretary Sean Duffy introduced Friday that the Federal Railroad Administration is investing $5.3 billion in rail tasks throughout 23 states, with roughly $2 billion coming from federal funds the Trump administration says it “saved” by canceling unspent funding for California’s high-speed rail challenge.

The cash will assist shut harmful railroad crossings, improve growing old infrastructure and buy new Amtrak trainsets because the administration touts what it calls a “Golden Age of Rail.”

“It’s easy: Boondoggles are OUT and security is IN,” Duffy stated. “As a substitute of losing billions of {dollars} on Newsom’s failed high-speed rail boondoggle, we’re fixing 1000’s of grade crossings – saving lives and enhancing communities throughout America.”

“We’re additionally making an unprecedented funding in Amtrak as a result of President Trump and I are dedicated to creating passenger rail in America nice once more,” Duffy added. “Gavin Newsom ought to take notes–that is the way you correctly make investments hard-earned taxpayer {dollars}.”

The announcement comes greater than a yr after Duffy pulled the plug on roughly $4 billion in unspent federal funding for California’s high-speed rail challenge.

In July 2025, the Federal Railroad Administration terminated the funding after figuring out that the California Excessive-Pace Rail Authority couldn’t meet its obligations underneath its federal grant agreements. The federal authorities stated the transfer would save taxpayers practically $4 billion and pledged to discover different makes use of for the cash.

Now, roughly $2 billion of that funding is being put towards different passenger rail tasks, in line with the Transportation Division.

The place the $5.3 billion goes

The federal rail funding is unfold throughout 23 states and contains:

• $2.05 billion to buy 43 Made-in-America Amtrak trainsets to interchange growing old gear.
• $140 million to overtake 41 Amtrak locomotives serving Midwest and Pacific routes.
• $356 million to the Florida Division of Transportation for repairs and upgrades at as much as 910 highway-rail crossings.
• $299 million to North Carolina to remove 9 grade crossings, set up double-track segments and fund trespassing prevention.
• $189 million to Texas to remove 9 crossings in Fort Price, Dallas and Terrell.
• $39 million to Hays County, Texas, to assemble a grade-separated bridge.
• $40 million to Fairfield, Ohio, to shut two rail crossings and construct a brand new bridge over a CSX rail line.
• $2.5 million to New Orleans to restore growing old platforms and canopies on the New Orleans Union Passenger Terminal.
• $1.1 million to Crete, Nebraska, to review eight present at-grade crossings and decide wanted enhancements.

The place the cash goes in California

California can also be receiving greater than $200 million from the broader $5.3 billion rail funding for tasks designed to enhance security and infrastructure.

• $124.4 million — Eastbrook to Shell Double Monitor: The grant will fund ultimate design and building of a brand new double-track phase, bridge substitute, pedestrian enhancements and rail-crossing security upgrades in Oceanside, Marine Corps Base Camp Pendleton and surrounding communities. The challenge is a component of a bigger effort to double-track the San Diego subdivision of the LOSSAN Hall.
• $43 million — Cherry Avenue Grade Separation: The funding will help challenge growth, ultimate design, right-of-way acquisition and building to separate an present BNSF-owned rail crossing at Cherry Avenue in Shafter. The challenge will profit Amtrak’s San Joaquin service.
• $33.6 million — Encinitas railroad crossing security: The cash will fund enhancements alongside roughly six miles of the LOSSAN Hall, together with new automobile and pedestrian gates at three crossings, closure of 1 pedestrian crossing, two new pedestrian and bicycle crossings and a brand new pedestrian and bicycle undercrossing.

California recorded 46 grade-crossing fatalities in 2025, whereas nationwide crossings see greater than 2,000 incidents and 200 deaths annually. The FRA stated it centered funding on crossings with the worst security data.

California’s high-speed rail challenge is transferring into observe set up within the Central Valley, with about 80 miles of guideway and 58 main buildings accomplished.

An inspector basic warned of a $9.5 billion funding hole and stated the challenge might run out of money by late 2027 with out new borrowing. The state is focusing on service on the 171-mile Merced-to-Bakersfield phase round 2033.

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The broader federal bundle will shut greater than 30 crossings, improve greater than 1,000 and supply $2.05 billion for 43 new Amtrak trainsets and $140 million to overtake 41 locomotives.

The FRA acquired 103 purposes looking for greater than $11.6 billion by the Nationwide Railroad Partnership Program.

The Trump administration has solid the spending as a greater use of taxpayer {dollars} than California’s high-speed rail challenge, which federal officers have criticized over delays, rising prices and funding shortfalls.

California officers have continued defending the challenge and pointing to building progress within the Central Valley.

The Put up has reached out to Newsom’s workplace for remark.