California mayors revolt over Newsom bullet train plan they warn could ‘raid’ local tax bases

May 24, 2026 9:00am EDT / Fox News

The project was approved in 2008 with a $33B price tag before ballooning to an expected $126B in costs this year

By Ashley J. DiMella Fox News

Hilton Slams California’s High-Speed Rail Debacle: ‘Just Amazing They’re Still Pretending This Thing Will Be Real’

Steve Hilton joins Jimmy Failla on Fox Across America to shed light on just how much of a financial disaster California’s high-speed rail project has been for the Golden State.

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California city leaders are escalating opposition to the state’s high-speed rail project amid fears the Golden State could tap local taxpayer funds to prop up the troubled rail system after nearly two decades of delays.

“This proposal in the 2026 Draft Business Plan is fiscally reckless, legally vulnerable, and fundamentally unfair to the communities expected to host High-Speed Rail facilities. It would weaken local governments, destabilize public services, and undermine constitutional protections that California voters have repeatedly affirmed. Simply put: the state cannot solve a state funding problem by raiding local tax bases,” wrote Fresno Mayor Jerry Dyer along with nine other mayors in the letter obtained by Fox News Digital.

The mayors penned the April letter to the CEO of the High-Speed Rail Authority (HSRA), slamming a tax and planning proposal to help bankroll the railroad that has been in the works since 2008.

The mayors urged the state to pursue voter-approved bonds or dedicated state revenue sources instead of “attempting to divert local tax growth through a legally dubious scheme.”

NEWSOM’S CALIFORNIA RAIL PROJECT NOW EXPECTED TO COST $126B, OFFICIAL ADMITS, WITH STILL NO TRACKS LAID

Ten California mayors are demanding an end to a draft proposal that would use local tax funds to bankroll the high-speed railroad.(Fred Greaves/Reuters)

The suggested plan first appeared in the California High-Speed Rail Authority’s 2026 Draft Business Plan. The plan outlined a full Phase 1 buildout of the line was re-estimated to cost $231.3 billion, while the Authority’s optimized approach puts the initial Phase 1 investment at about $126.2 billion.

The proposed funding for the high-speed rail would not create a new tax, but redirect tax revenues near future High Speed Rail stations to the project, local outlet the Fresno Bee reported.

A California High-Speed Rail Authority spokesperson pushed back on the mayors’ characterization, saying there is no finalized plan to capture local revenues.

“There is no proposal. Through the 2026 Draft Business Plan, the Authority is continuing conversations with local jurisdictions and stakeholders about potential tools that could support station-area infrastructure and long-term system delivery,” said a California High-Speed Rail Authority spokesperson.

President Donald Trump and other administration officials have repeatedly called out Newsom and other California leaders for the time and money that has been spent on the project since it was approved in 2008 with an initial $33 billion price tag, before ballooning to more than $200 billion in expected costs.

“A little train going from San Francisco to Los Angeles that’s being run by Gavin New-scum — the governor of California,” Trump said on May 6. “Did you ever hear of Gavin Newsom? He has got that train—the worst cost overrun I’ve ever seen. It’s like, totally out of control.”

The railroad project was approved in 2008 with an initial $33 billion price tag.(Damian Dovarganes/AP)

“It is not constitutionally allowable in California for the state of California to come in and take those sales tax dollars for any other purpose than what they’re intended for, and that’s to support local government,” said Dyer.

He added that mayors have been left in the dark, having not met with HSRA officials, been left out of conversations and remained unsure of what the tax would be.

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The nine other mayors who signed the letter represent the cities of Anaheim, Lancaster, Riverside, Bakersfield, Gilroy, Merced, Burbank, Hanford and Stockton.

Mayors called the plan to cherry-pick tax dollars as “legally dubious scheme” and “sets a dangerous statewide precedent.”

Lawmakers and local officials have slammed the project for failing to show deliverables and seemingly wasting taxpayer funds, while project leaders insist it will be completed.

“California’s high-speed rail has become a slow-moving train wreck — a case study in government waste and mismanagement, with billions spent, deadlines blown, and still nothing to show for it,” Rep. Vince Fong, R-Calif., wrote on X in April. “No finished track. No trains. Just broken promises. Years later, taxpayers are still footing the bill.”

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While at a conference in Washington, D.C., HSRA CEO Ian Choudri said the high-speed railway will be finished “in our lifetime,” SFGate reported.

The Department of Transportation canceled billions of dollars in federal grants for the project in the summer of 2025.

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Fox News Digital reached out to the HSRA, office of Gov. Newsom and Mayor Dyer for comment.

Ashley J. DiMella reports on politics for Fox News Digital.