The Trump administration plans to reallocate $2.4 billion it previously withdrew from California’s high-speed rail project, directing it instead toward a new $5 billion national rail initiative announced Monday. The program aims to boost passenger rail traffic across the country.

The new grant program removes language related to climate change and diversity, equity, and inclusion (DEI) that had been emphasized during the Biden administration. Instead, it prioritizes projects that enhance railroad crossing safety and are located in regions with higher birth and marriage rates.

Transportation Secretary Sean Duffy criticized both California Governor Gavin Newsom’s rail project and the Biden-era grant requirements, stating that the new program will focus on safety and practical improvements for passengers and communities rather than “radical DEI and green” policies.

Most of the funding comes from the $4 billion previously taken from California’s high-speed rail effort, which has faced years of delays and cost overruns. The remainder is drawn from prior funding announcements and the current year’s budget.

California officials, who have long defended the project to connect San Francisco and Los Angeles, argue the federal government has no legal right to redirect the funds. The California High-Speed Rail Authority has already sued to challenge the funding withdrawal and is prepared to take further legal action.

The Trump administration says the focus on family-friendly regions aligns with executive orders prioritizing American families. Rail safety remains a major concern, especially at crossings where over 200 deaths occur annually. Some of the funds are also expected to benefit freight railroads used by Amtrak.

Additional priorities include upgrades to passenger experience, such as improved waiting areas, children’s play zones, and facilities for nursing mothers in train stations.