On July 16, 2025, the Department of Transportation (DOT) announced a final decision to end Cooperative Agreement No. FR-HSR-0118-12 for California’s high-speed rail development. DOT canceled the remaining balances under this agreement, which totaled over $4 billion for the Merced-to-Bakersfield corridor project. Additionally, the Federal Railroad Administration (FRA) determined that the California High-Speed Rail Authority would not be able to deliver the final project, which constituted a project material change. This decision constituted grounds for terminating the project.