The Trump administration has formally announced plans to withdraw approximately $4 billion in federal funding designated for California's high-speed rail project, which aims to connect Los Angeles and San Francisco.

In a letter and a 310-page report sent to the California High-Speed Rail Authority (CHSRA), Drew Feeley, the acting chief of the Federal Railroad Administration (FRA), criticized state officials for alleged financial mismanagement and repeated delays in the project timeline.

Feeley stated, "We promised the American people that we would be good stewards of their hard-earned tax dollars.

This report exposes a harsh and straightforward truth: CHSRA does not have a viable path to complete this project on time and within budget." Sean Duffy, the Secretary of Transportation, echoed these concerns, emphasizing a reluctance to invest in what he termed 'wasteful expenditures' while also expressing support for high-speed rail in the United States, questioning why construction timelines cannot align with investor interests.

This ongoing conflict between Washington and Sacramento is not new; Trump has been critical of the project since his first term and halted nearly $1 billion in federal funds previously allocated to it.

Recently, he remarked on the untrustworthiness of the current rail project, referencing its significant cost overruns and management issues, labeling it as "the worst-managed project I've ever seen."

The Federal administration accuses California's Democratic Governor Gavin Newsom of increasing the initial budget from $33 billion to an estimated $77.3 billion.

The project's scope has also scaled back, with plans to transport 10 million passengers annually between the two major cities reduced to a segment that now only extends from Bakersfield to Modesto, shrinking from an original 800 miles to just 119 miles.

In light of these developments, CHSRA's CEO Ian Choudri suggested the possibility of seeking private investment to help realize the initial vision of connecting Los Angeles and San Francisco in under three hours, a goal set for completion in 2020.

California officials have criticized the decision to withdraw funds, labeling it a 'devastating blow' to what proponents believe is the future of transportation in the U.S. They argue that it has the potential to connect customers to new businesses, businesses to new employees, and communities hundreds of miles apart with more affordable and faster public transit options.

However, with Trump's administration continuing to hold the presidency, the likelihood of receiving federal support for the initiative appears significantly diminished.