By Maxwell Adler and Skylar Woodhouse | Bloomberg

President Donald Trump said Tuesday that the federal government would not finance California’s high-speed rail project, escalating tensions over the state’s long-delayed infrastructure plan.

Trump’s comments come as his administration undertakes a formal compliance and performance review of the project, raising doubts about the future of the rail line. Transportation Secretary Sean Duffy announced in February that the Federal Railroad Administration would conduct the probe.

“It’s hundreds of billions of dollars for this stupid project that should have never been built,” Trump said while taking questions alongside Canadian Prime Minister Mark Carney. “This government is not going to pay.”

The California High-Speed Rail Authority in 2008 said the high-speed rail line would cost $33 billion and begin service by 2020. So far, only about 119 miles of the planned 776-mile railroad have commenced construction, and the estimated costs have soared to as much as $128 billion.

An inspector general report in February found the project was unlikely to meet its 2033 passenger service goal and identified a $6.5 billion funding gap for the Central Valley segment between Merced and Bakersfield.

“Lack of stable, long-term funding has been a persistent challenge,” said Ian Choudri, CEO of the California High-Speed Rail Authority, in a March report. “The ‘stop-and-go’ approach has cost us time and money.”

The project has long been subject to shifting political priorities. President Trump canceled nearly $1 billion in federal funding during his first term, while the Biden administration awarded $3 billion in 2023.

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