California Withdraws Lawsuit Against Trump Administration Over High-Speed Rail Funding

Sat Dec 27 2025 23:55:46 GMT+0200 (Eastern European Standard Time)

California has officially dropped its lawsuit against the Trump administration, which involved a $4 billion funding withdrawal for the state's high-speed rail project, allowing the state to explore alternative funding sources.

In a significant shift, California's High-Speed Rail Authority has dropped its lawsuit against the Trump administration concerning the withdrawal of $4 billion in federal funds for a long-delayed high-speed rail project connecting San Francisco to Los Angeles. State officials cited the federal government's unreliability as a partner in this initiative while expressing intentions to seek private investment and additional state funding. The project has undergone scrutiny and criticism from federal officials labelled as a 'train to nowhere.'

OAKLAND, Calif. — California officials announced this week that the state will drop a lawsuit against the Trump administration regarding the withdrawal of $4 billion for its high-speed rail project. This decision marks a significant change in the state's strategy as it aims to continue moving forward with the long-delayed rail initiative connecting Los Angeles to San Francisco.

In July, the U.S. Transportation Department cut federal funding for the bullet train, concluding that the California High-Speed Rail Authority had 'no viable plan' for completing a key segment of the project in the Central Valley, which is crucial for agricultural transport.

In response to the funding cut, California quickly launched a lawsuit, with Governor Gavin Newsom condemning the administration's action as 'a political stunt to punish California.' However, the High-Speed Rail Authority has now decided to withdraw from the lawsuit and instead focus on securing alternative funding sources, including private investments.

'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,' stated a spokesperson for the California High-Speed Rail Authority.

The ongoing financial concerns surrounding the project, which is forecasted to cost over $100 billion, require innovative approaches to financing. The authority noted that it recently secured $1 billion per year from California's cap-and-trade program, which aims to fund projects that address climate change and renewable energy.

As officials move forward, they emphasize the potential for new funding opportunities that do not rely on federal support, looking to adopt best practices from successful high-speed rail systems worldwide.