California High-Speed Train on the Line in Cap-and-Trade Debate

May 9, 2025, 9:00 AM UTC

Some California Democrats are questioning whether to continue to dedicate billions of dollars of revenue from the state’s cap-and-trade program to its high-speed rail system just as President Donald Trump is vowing to withhold federal funding for the long-delayed project.

Gov. Gavin Newsom (D) and Democratic legislative leaders said they are committed to reauthorizing the cap-and-trade program this year. The greenhouse gas emissions reduction program generates revenue for a fund that supports a range of initiatives, from housing to public transit. The single largest share of the fund’s revenue—25% each year—goes to high-speed rail. The program has provided a total ...

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