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California High-Speed Rail Faces Fresh Federal Cuts, Legal Battles, and Legislative Setbacks

California’s high-speed rail project faces fresh setbacks as the Trump administration pulls another $175M in funding, California files a lawsuit, and state lawmakers demand a detailed funding plan—while construction in the Central Valley continues

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Last Updated on September 4, 2025 by Daily News Staff

California High-Speed Rail

The future of the California High-Speed Rail project continues to hang in the balance as new funding cuts, legal challenges, and legislative hurdles intensify the fight over America’s most ambitious transportation project.

More Federal Funding Pulled

The Trump administration has escalated its efforts to derail the project, announcing in late August that it will cancel an additional $175 million in federal funding previously allocated for grade separations, overcrossings, station design, and the Madera station. This move comes on top of the $4 billion in federal grants already revoked earlier this summer, dealing another heavy blow to the California High-Speed Rail Authority’s (CHSRA) financial stability.

👉 Read more from The Guardian

👉 Full coverage from San Francisco Chronicle

👉 Reuters: U.S. cancels another $175 million

California Pushes Back in Court

On July 17, 2025, California filed a federal lawsuit challenging the termination of funding agreements, arguing that the federal government’s actions are unlawful and politically motivated. CHSRA insists that construction progress in the Central Valley demonstrates the project’s viability, and state officials argue billions already invested should not be wasted because of shifting political winds.

Legislative Efforts Falter

Meanwhile, at the state level, an attempt to streamline permitting and right-of-way approvals for rail construction—Senate Bill 445—recently failed in the Assembly’s “suspense file” process. Opponents raised concerns about cost and oversight, while supporters argued the bill was necessary to speed progress on long-delayed segments.

At the same time, California lawmakers passed Assembly Bill 377, requiring CHSRA to present a detailed funding plan for the Merced-to-Bakersfield segment in its 2026 business plan. The plan must identify funding sources, timelines, and risk assessments, adding pressure on CHSRA to demonstrate financial credibility.

Construction Progress Continues

Despite the political and financial turmoil, construction has not stopped. CHSRA recently issued invitations for bids on track and system components set to begin installation in 2026. In addition, the Avenue 88 grade separation in Tulare County—marking the 57th completed structure and the **7th opened to traffic this year—**shows visible progress across the Central Valley.

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What’s at Stake

The latest developments raise several key questions:

Can California close its multi-billion-dollar funding gap without federal support? Will lawsuits succeed in reversing the funding cuts? How will continued construction progress weigh against political and financial obstacles? What lessons will this battle leave for future U.S. infrastructure projects?

For now, workers continue building in the Central Valley while lawyers and politicians clash over the project’s fate. The next several months may prove decisive in determining whether the California High-Speed Rail becomes the backbone of a modernized transportation system—or a cautionary tale of ambition derailed by politics.

Related links:

Trump administration pulls another $175m from California’s high-speed rail – The Guardian

Absolutely brain dead’: High-speed rail advocates push back as Trump administration cuts more funding – San Francisco Chronicle

US cancelling another $175 million in California high-speed rail projects – Reuters

California High-Speed Rail Authority: Federal Grants – CHSRA Official Site

High-speed rail bill dies in Legislature’s suspense file – CalMatters

Related Articles

California High-Speed Rail Fights Back: CHSRA’s Forceful Response to Federal Defunding Threat – the main story providing in-depth context on the funding clash and CHSRA’s rebuttal.

Putting jobs first: California High-Speed Rail crosses 13,000 construction jobs milestone – highlights the project’s ongoing economic and employment impact.

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Lifestyle

California and Minnesota Face $1B Medicaid Funding Hold

The Trump administration is withholding more than $1 billion in Medicaid funding from California and Minnesota over disputed medical claims. A social-policy historian examines how concerns about fraud have historically been used to justify funding cuts and undermine public confidence in Medicaid.

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Agents, many wearing jackets or vests emblazoned with 'FBI,' exit a building with what appears to be a trove of documents.Medicaid Funding.
Federal agents execute a search in December 2025 tied to potential Medicaid fraud in Bloomington, Minn. Christopher Juhn/Anadolu via Getty Images

Ben Zdencanovic, University of Cambridge

California and Minnesota Face $1B Medicaid Funding Hold

The Trump administration announced on July 21, 2026, that it’s withholding US$867 million in federal healthcare funding for California and $200 million for Minnesota – a total of more than $1 billion.

Federal officials said the two states had failed to provide sufficient evidence that a number of disputed medical claims were legitimate. These include bills for in-home care and other services covered by the two states’ Medicaid programs for low-income residents.

Medicaid administrators say the funds can be recovered if the states supply the requested documentation. But the action is highly unusual: Typically, Medicaid officials partner with states to conduct an audit when they suspect fraud, a careful process that often takes years.

It’s the second time in 2026 that the Trump administration has withheld or deferred federal Medicaid funds for several states, including California and Minnesota, because of alleged fraud and abuse. The Democratic governors of those states have called the decision a politically motivated attack on their constituents.

I’m a historian of social policy who led the first comprehensive historical overview of Medi-Cal, California’s statewide Medicaid system. I’ve found that U.S. leaders have long used the language of fraud and abuse to blur the line between correcting very real failures within Medicaid and – as I believe the Trump administration is currently doing – discrediting and defunding the program itself.

Who pays when Medicaid is cut? It affects children’s health care, nursing home care, disability services and health insurance.

Slashing the safety net

The Medicaid restrictions are part of the Trump administration’s overall efforts to slash federal funding for the safety net.

The large tax-and-spending bill that Trump signed into law in July 2025 as the cornerstone of his second-term agenda pared eligibility for Medicaid by introducing work requirements for some adults. It is cutting close to $1 trillion in federal spending on the program over the next decade.

Researchers estimate that almost 12 million people, on top of the estimated 28 million without health insurance in 2025, could become uninsured by 2034 due to these changes. By mid-2026, more than 3 million people had already lost their insurance coverage due to Republican changes to the Affordable Care Act.

‘Padlocking’ the ‘cookie jar’

In February 2026, Vice President JD Vance, Health Secretary Robert F. Kennedy Jr. and Dr. Mehmet Oz, the administrator of the Centers for Medicare & Medicaid Services, or CMS, announced a new anti-fraud initiative called Comprehensive Regulations to Uncover Suspicious Healthcare.

Also known by its rather unsubtle acronym, CRUSH, this initiative is taking unprecedented steps to withhold and defer funds in response to suspected fraud. “CMS is done trying to catch fraudsters with their hands in the cookie jar,” Oz said in announcing CRUSH’s formation. “Instead, we’re padlocking the jar and letting them starve.”

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To be sure, Medicaid fraud, waste and abuse – such as providers billing Medicaid for services that are unnecessary or never rendered – are very real problems that cost taxpayers billions of dollars annually. They do divert funds from the low-income and disabled Americans enrolled in the program.

But the Trump administration’s latest moves are part of a much broader history of weaponizing Medicaid fraud and abuse – both real and imagined. I see them as a politicized attempt to prove that Medicaid itself is wasteful, that state governments cannot be trusted to administer federal money, and that public benefits inevitably invite dishonesty.

Robert F. Kennedy Jr. points to a chart pertaining to Medicaid fraud.
Secretary of Health and Human Services Robert F. Kennedy Jr. speaks about alleged Medicaid fraud and charges in Minneapolis in May 2026. Christopher Juhn/Anadolu via Getty Images

Providing little oversight at the start

Medicaid was established, along with Medicare for older adults, in 1965 as part of President Lyndon B. Johnson’s “Great Society” reforms. Despite providing millions of Americans with health insurance coverage for the first time, these programs had few centralized mechanisms for the kind of federal oversight that could prevent and catch fraud and abuse.

And the sheer scale and complexity of the Medicaid system – joint federal-state funding, varying eligibility requirements, millions of enrollees and thousands of providers – created opportunities for questionable billing practices among providers.

The 1970s saw a number of highly publicized Medicaid scandals involving nursing homes, laboratories, pharmacies and so-called “Medicaid mills” – healthcare providers that sought to bill the government for large numbers of Medicaid patients for shoddy and often fraudulent care.

A series of high-profile congressional investigations spurred demand for stronger Medicaid oversight and enforcement. That led to the Medicare-Medicaid Anti-Fraud and Abuse Amendments of 1977, which established the national Medicaid Fraud Control Units program.

The state-run Medicaid Fraud Control Units received generous federal matching funds to investigate and prosecute fraud.

The most serious Medicaid fraud was generally committed by healthcare providers and contractors, not patients. Medicaid Fraud Control Units were principally responsible for investigating providers, while also prosecuting the abuse and neglect of patients whose care was billed to Medicaid.

At the same time, however, Medicaid was becoming entangled in a broader political debate over social spending, whether many Americans were becoming too dependent on government benefits, and the alleged use of benefits by people who should not have received them. In the 1980s and 1990s, widely circulated stories about Medicaid exposed fraud and malfeasance by providers.

But disproportionately, they also highlighted the comparatively few instances of fraud by people enrolled in the program, such as cases where they submitted false receipts for covered medically related travel or sold drugs they obtained through Medicaid for free or at low cost.

Using Medicare fraud to justify spending cuts

The distinction between Medicaid and cash assistance programs, such as the Aid to Families with Dependent Children “welfare” program, frequently disappeared in political rhetoric. False or exaggerated stories that portrayed African American single mothers living extravagantly while fraudulently claiming welfare benefits became potent symbols of supposed government failure.

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While campaigning as a presidential candidate, Ronald Reagan seized on this trope of the “welfare queen” in his attacks on social spending.

A large crowd of people wait on lines in a black and white photo from the 1970s.
People line up at the Baltimore City Welfare Office in 1975, years before concerns about social spending led to big cuts to safety net programs. O’Halloran/Library of Congress via Getty Images

By the mid-1990s, opposition to welfare programs had become increasingly bipartisan. Politicians in both parties often used tales of Medicaid fraud on the part of providers and recipients to justify tighter eligibility rules and spending cuts.

Federal oversight expanded further with the Deficit Reduction Act of 2005, which created the Medicaid Integrity Program and strengthened federal oversight of state programs. The Affordable Care Act, the landmark healthcare legislation Congress passed in 2010, added new measures to screen providers and verify billing.

Concerns about Medicaid’s “integrity” became highly politicized in the debates surrounding the ACA. Critics of Medicaid expansion argued that increasing the number of people who could get health insurance through the program would increase fraud and improper enrollment. Supporters of expanding Medicaid to help more Americans gain health insurance maintained that anti-fraud rhetoric often disguised ideological opposition to the program’s expansion.

Blurring distinctions then and now

For the six decades that this program has helped millions of low-income Americans get healthcare, politicians have blurred the distinction between protecting Medicaid from abuse and using abuse to discredit Medicaid itself.

In my view, the Trump administration’s campaigns against California and Minnesota continue that pattern. It is using real weaknesses within Medicaid to advance much broader political arguments: that Democratic states cannot be trusted, that public benefits naturally invite abuse, and that withholding funds is itself a form of reform.

The result will no doubt be that fewer low-income Americans will be able to get the healthcare they need.

Ben Zdencanovic, Assistant Professor of U.S. History, University of Cambridge

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Community

9/11 Day Awards $3 Million in Grants to Expand Volunteer Opportunities Nationwide Ahead of 25th Anniversary

9/11 Day announced $3 million in grants to nearly 200 groups across 40 states, expanding service projects for the 25th anniversary observance.

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one world trade center an other skyscrapers in new 2026 01 08 21 59 49 utc
New York City, USA – June 20, 2018: One World Trade Center and other skyscrapers against blue sky in Financial District of Manhattan. Business and technology background

As the United States approaches the 25th anniversary of September 11, 2001, the nonprofit 9/11 Day is putting major resources behind a familiar idea with renewed urgency: remembrance through service. The organization—founded by 9/11 families and leaders and co-led by co-founders David Paine and Jay Winuk—announced $3 million in grants to roughly 200 nonprofits, schools, and community groups across 40 states to expand local volunteer projects tied to this year’s September 11 National Day of Service and Remembrance.

The funding is designed to dramatically increase the number of ways Americans can participate close to home, from food insecurity initiatives to neighborhood cleanups and support programs for veterans and first responders. Together, grant recipients are expected to engage more than 70,000 volunteers nationwide.

A major push toward youth-led service

More than 70% of the grant funding is going to youth organizations and educational institutions, including K–12 schools, universities, and other learning programs. The emphasis reflects a generational reality: millions of students today know 9/11 primarily through textbooks, family stories, and classroom lessons.

“For many students participating in the observance this year, 9/11 is something they’ve only encountered in textbooks or through stories from parents and grandparents,” said Jay Winuk, co-founder and executive vice president of 9/11 Day and a 9/11 family member. “By connecting history with hands-on service, we’re helping young people understand that the legacy of 9/11 isn’t defined only by tragedy. It’s also defined by compassion, resilience and the responsibility we all share to care for one another.”

Youth-focused projects supported by the grants include school-wide days of service, hunger-relief efforts, donation drives, community improvement work, and service-learning initiatives that connect the history of September 11 with practical ways to help others.

UNIITE for Good: turning an anniversary into a nationwide “doing good” moment

The grant program is a cornerstone of 9/11 Day’s nationwide UNIITE for Good campaign, scheduled to officially launch August 24. The campaign aims to transform the 25th anniversary into what organizers describe as America’s largest day of doing good—channeling remembrance into tangible community impact.

The program is administered in collaboration with AmeriCorps, with principal funding provided by AmeriCorps and the Popeyes Foundation. A special emphasis this year is addressing hunger—an issue described in the release as an “ever-growing hunger crisis across the nation.”

Meeting community needs where people live

Grant-funded projects span urban, suburban, and rural communities. Activities include assembling meals for individuals and families facing food insecurity, packing care kits for veterans and first responders, restoring community spaces, and strengthening schools and neighborhoods.

Beyond the service itself, the grants are also intended to help local groups recruit volunteers, purchase supplies, coordinate logistics, and expand the number of service opportunities available in their areas.

“As we mark the 25th anniversary of 9/11, we have a responsibility to preserve not only the memory of that day and those lost and injured, but also the extraordinary way Americans came together in the aftermath of the attacks,” said David Paine, president and co-founder of 9/11 Day. “These community-led projects are helping rekindle that spirit of unity, compassion and service by bringing neighbors together to help solve local challenges.”

AmeriCorps echoed that message, framing service as a way to honor those who responded in the immediate aftermath of the attacks.

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“This year, we invite Americans to carry forward that enduring spirit of unity and service by becoming a hero for someone in need,” said Emily Stock, project manager for Volunteer Initiatives at AmeriCorps, noting that AmeriCorps-funded projects will include food drives, home repairs, neighborhood cleanups, and disaster preparedness activities.

The Popeyes Foundation also highlighted its community-focused mission and its role in supporting local projects.

Why this anniversary matters now

Organizers say the 25th anniversary arrives at a pivotal moment: more than 100 million Americans are now too young to have personal memories of September 11. That makes this milestone one of the last major opportunities to connect those who lived through the day with younger generations learning about it as history.

Examples of grant-supported efforts include:

  • Marshall University, which plans to build on its existing 9/11 Days of Service tradition, including a Memorial Stair Challenge and volunteer projects supporting veterans, first responders, and families in need.
  • Middlebury Elementary School, which will expand hands-on service activities that teach younger students about 9/11 through compassion and community action.
  • University of South Dakota, where students will work alongside community partners to address local needs while learning how service can bridge backgrounds and perspectives.

How to get involved

A full list of 2026 9/11 Day Grant Program recipients is available through 9/11 Day. To learn more about the September 11 National Day of Service and Remembrance—and to find ways to participate—visit 911day.org.

STM Daily News will continue tracking community service initiatives and local observances tied to the 25th anniversary as September approaches

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The United States’ human rights practices are taking a nosedive

New human rights data shows the United States’ civil and political rights record deteriorated sharply in 2025, with major declines involving detention, free expression, religious freedom and political participation.

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Officers in camouflage gear and helmets detain a man, his hands held behind his back, as rows of uniformed personnel line the road behind them. Human Rights
Police detain a man during a June 2025 protest in Paramount, Calif., where federal immigration authorities had conducted operations. AP Photo/Eric Thayer

K. Chad Clay, University of Georgia

In the lead-up to the 2026 midterm elections, how is the U.S. government performing in terms of human rights? Listening to politicians, it can be difficult to know.

On one hand, some have pointed to a number of potential human rights abuses committed by the U.S. government inside and outside its borders in the past two years.

On the other hand, while marking the United States’ 250th anniversary this year, President Donald Trump called the country “the home of freedom,” “the land of liberty” and “the most extraordinary, most exceptional, most incredible nation ever to exist on the face of the earth.”

“We’re doing better now than we’ve ever done before,” he said.

So which is it?

According to many of the human rights data sources available, the U.S. lags behind most other high-income democracies – countries that are both members of the Organisation for Economic Co-operation and Development and classified as high income by the World Bank. The U.S.’s poor performance spans civil and political rights, such as the right to be free from torture and the right to political participation, as well as economic and social rights, including the rights to health and food.

In fact, the U.S. has been a relatively poor performer across many of these rights for quite some time, regardless of the political party in power.

Even accounting for the U.S.’s prior poor practices, however, new data from the Human Rights Measurement Initiative shows that in 2025 the country’s civil and political rights performance deteriorated even further.

As a human rights scholar who has been measuring human rights practices for 20 years – and as one of HRMI’s co-founders – I believe this data raises serious questions about the United States’ commitment to human rights.

Blurry shot of protesters walking, one carrying a large upside-down American flag and another holding a cardboard sign
Protesters walk through a shopping center after attending a demonstration for Renee Good, who was fatally shot by an ICE officer in Minneapolis in January 2026. AP Photo/Charlie Riedel

How are rights practices measured?

Governments rarely publish accurate information on their own human rights abuses, so the task of measuring them typically falls to advocates and scholars.

Historically, most international measures of civil and political rights have depended on public reports from the U.S. State Department, Amnesty International, Human Rights Watch or news organizations.

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However, these reports cannot cover every human rights violation that experts know about, especially in countries with low government transparency or high levels of repression.

Thus, data produced using those sources will show fewer abuses than those that have actually occurred and will be more accurate about some places than others. Further, the Trump administration has changed one of the most important sources of human rights information, the U.S. State Department’s Country Reports on Human Rights Practices, to contain more bias in favor of the administration’s foreign allies and less information on human rights abuse overall.

Since 2017, HRMI has used a different approach. Recognizing the problems with public reports, we collect information directly from researchers for human rights organizations, human rights lawyers and others, asking them about governments’ practices across several rights and using a statistical model to assess their information and ensure that the resulting metrics are comparable across countries. The result is a robust dataset that includes information previously missing from public reports.

Today, HRMI’s civil and political rights dataset covers 62 countries, with more added every year.

How does the US compare?

According to the Human Rights Scores dataset, which uses publicly available information to score more than 190 countries on physical integrity rights – such as the rights to be free from torture, killing, forced disappearance and political imprisonment – the U.S. never ranked higher than 81st from 2001 to 2021 or higher than 109th from 2010 to 2021.

Indeed, from 2003 to 2021, the United States’ score was either the worst or the second-worst every year among high-income OECD member states, which include the United Kingdom, Japan and New Zealand.

The Human Rights Scores dataset has not been updated past 2021, but HRMI’s data collected since that time suggests that the pattern has continued.

Among the six high-income OECD countries on which HRMI currently collects data, the U.S. has been the worst performer for physical integrity rights since 2017.

It has also frequently been rated as the worst performer on “empowerment rights,” or the rights to assembly, association, opinion, expression, political participation, religion and belief.

Uniformed officers in helmets grapple with protesters as onlookers record the scene with cameras.
Officers detain protesters outside a U.S. Immigration and Customs Enforcement facility in Illinois on Oct. 11, 2025. AP Photo/Adam Gray

What changed in 2025?

Even starting from this poor position, the U.S.’s civil and political rights practices dramatically worsened in 2025. HRMI measures nine civil and political rights, and the U.S. significantly worsened on eight of them.

These were not small changes. Measured against every significant change HRMI has recorded since 2017, the U.S. showed the largest decline ever observed for the right to be free from forced disappearance and for the right to freedom of religion and belief.

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The U.S. showed the second-largest decline ever observed for the right to be free from arbitrary or political arrest and for the right to opinion and expression.

The U.S. also showed major declines in the rights to be free from torture and extrajudicial killing, and the right to political participation – that is, the right to participate in one’s government via free and fair elections, to take part in public affairs and to have access to public service. U.S. scores likewise fell in the right to assembly and association, which are, respectively, the rights to peacefully gather in public or private and to form or join groups and organizations.

What caused the scores to fall?

Human rights experts raised several issues that led to these declines. For instance, the U.S.’s worsened scores for the rights to be free from arbitrary detention, disappearance and torture were tied to the expanded use of practices such as incommunicado detention and warrantless arrest by ICE and other immigration-related agencies.

While several killings occurred during ICE operations in 2025, the worsened extrajudicial killing score was also tied to the country’s use of airstrikes against boats in the Pacific and Caribbean, which caused the deaths of at least 123 people in 2025 alone.

Other changes enacted in 2025 contributed to large declines in the U.S.’s rights scores, including crackdowns on anti-ICE demonstrations and government pressure on universities, including limits on free speech and class subjects.

Last year also saw threats to television networks over political expression, restrictions on mail-in voting, state measures targeting American Islamic organizations by labeling them “foreign terrorist organizations” and an executive order focused on eradicating “anti-Christian bias.”

While current HRMI data does not yet cover 2026, early indicators are not promising, with continued abuses by ICE, further killings in international waters and allegations of attempts to use government powers to punish critics.

K. Chad Clay, Director, Center for the Study of Global Issues (GLOBIS); Associate Professor of International Affairs, University of Georgia

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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