Billion-Dollar Boondoggle: Newsom Under Fire for Funding High-Speed Rail Over Critical State Services

Facing a staggering $12 billion deficit, California Governor Gavin Newsom unveiled a revised $322 billion state budget Wednesday, drawing sharp criticism from Republican Assemblywoman Alexandra M. Macedo over continued funding for the embattled high-speed rail project.

In a pointed statement, Macedo blasted the governor’s plan to funnel $1 billion in cap-and-trade funds to the California High-Speed Rail Authority—a project she calls “a failed priority” that continues to bleed taxpayer dollars without delivering results.

“Make no mistake, the Governor doubled down on a failed project and made high-speed rail a top priority for future cap-and-trade funding,” Macedo said. “He has the authority to redirect this money to essential services like wildfire prevention and water infrastructure—real needs that impact Californians daily.”

Macedo rejected Newsom’s attempt to pin the state’s financial troubles on former President Trump, noting that the state’s fiscal instability predates Trump’s latest term. “The Governor likes to blame President Trump for the state’s budget woes,” she said, “but the problems started long before he returned to office.”

According to Macedo, the $1 billion allocated to the rail project won’t even make a dent in its ballooning costs. The first phase alone—from Merced to Bakersfield—still faces a $7 billion shortfall, with the project already $13.7 billion deep and no track laid after 17 years.

She also highlighted serious concerns about oversight and management. “Audit after audit, the High-Speed Rail has been found mismanaged and plagued with delays,” she said.

Under the new budget, the High-Speed Rail Authority will receive a guaranteed $1 billion from the cap-and-trade program—regardless of total revenue. If auction proceeds dip to $2 billion, for example, the rail project would still receive 50% of available funds.

Macedo underscored the missed opportunity to invest in urgent needs across California. “At a time when the state is in deficit, and core services are stretched thin, this billion dollars could—and should—go toward supporting Californians, not propping up a project that has failed to deliver.”

Governor Newsom has defended the allocation as part of a broader climate strategy. Still, critics like Macedo argue that sound fiscal stewardship—and not political legacy projects—should guide budget decisions in a time of crisis.