California high speed rail project cost grows to $79 billion

California high speed rail project cost grows to $79 billion
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The estimated cost of California's high-speed rail project grew to $79 billion on Wednesday, according to a new High-Speed Rail Authority report.

The segment already under construction in the Central Valley is now expected to cost $12.4 billion, up from $10.6 billion.

The cost increase is likely to embolden the Trump administration's efforts to cancel federal grants for the project.

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The state agency attributed the $2 billion price hike to changes in the scope and planning for contingencies.

California's high-speed rail system was initially designed to connect the metropolitan centers of San Francisco and Los Angeles.

Gov. Gavin NewsomGavin Christopher NewsomOn The Money: House votes to avert shutdown, fund government through November | Judge blocks California law requiring Trump tax returns | Senate panel approves three spending bills Federal judge blocks California law requiring Trump tax returns Newsom: Nixon and Reagan 'rolling in their graves right now' over what GOP has become MORE (D) said in February that the rail line as planned “would cost too much and take too long," pivoting focus to completing the Central Valley segment.

The agency’s report said the line connecting Merced, Fresno and Bakersfield would be completed by the end of 2028.

President TrumpDonald John TrumpMarine unit in Florida reportedly pushing to hold annual ball at Trump property Giuliani clashes with CNN's Cuomo, calls him a 'sellout' and the 'enemy' Giuliani says 'of course' he asked Ukraine to look into Biden seconds after denying it MORE has lashed out at California for the project, invoking its funds in his push for money to construct a wall along the southern border.

Newsom pushed back, saying "this is CA’s money, allocated by Congress for this project. We’re not giving it back."