California dropped a lawsuit this week after the federal government withdrew $4 billion from the state’s long-delayed high-speed rail project.
The Federal Cut
The U.S. Transportation Department slashed funding for the bullet train that aims to link San Francisco to Los Angeles in July. The Trump administration cited the California High-Speed Rail Authority’s lack of a “no viable plan” to finish a major Central Valley segment as the reason for the cut.
Authority’s Response
The authority filed the lawsuit immediately, and Democratic Gov. Gavin Newsom called the federal decision a “political stunt to punish California.” An authority spokesperson said, “This action reflects the State’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California.”
Funding Alternatives and Future Plans
With the lawsuit dropped, the authority will pursue other funding sources to complete the project, which is estimated to cost more than $100 billion. The group is seeking private investors and has secured $1 billion in annual funding from the state’s cap-and-trade program through 2045.
Trump’s Criticism
President Donald Trump and Transportation Secretary Sean Duffy have previously called the project a “train to nowhere.” Trump posted on Truth Social in July: “The Railroad we were promised still does not exist, and never will.” He also said, “This project was Severely Overpriced, Overregulated, and NEVER DELIVERED.”
Key Takeaways
- California abandons lawsuit after federal $4 billion cut.
- Authority cites unreliable partnership and seeks private investment.
- State’s cap-and-trade program provides $1 billion annually until 2045.
California’s decision marks a shift away from federal support, allowing the rail authority to explore private and state funding options for the high-speed rail system.
