CALIFORNIA (AP) — In a notable shift, California officials have decided to drop the lawsuit filed against the Trump administration regarding the cancellation of $4 billion in federal funding for the state’s high-speed rail project. The U.S. Transportation Department slashed the funds earlier, with officials stating that the California High-Speed Rail Authority lacked a viable plan for a critical segment of the project located in the Central Valley.
In response to the federal government’s actions, Governor Gavin Newsom condemned the funding cuts as a politically motivated move aimed at punishing California. The state rail authority quickly filed a lawsuit but announced this week a strategic pivot towards alternative funding sources for the high-speed rail project, which is projected to exceed $100 billion in costs.
A spokesperson for the authority indicated this shift reflects a broader evaluation of federal relations, noting, “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.”
The Transportation Department had not commented on the latest developments by the time of the announcement. Previously, both President Trump and Transportation Secretary Sean Duffy expressed skepticism about the project, criticizing it as a “train to nowhere.”
As part of its new strategy, the rail authority is seeking private investment to continue the project, having recently secured $1 billion in annual funding from California's cap-and-trade program until 2045. This program imposes a declining limit on greenhouse gas emissions from major polluters, generating revenue that can be reinvested into climate projects, affordable housing, and transportation improvements.
The California High-Speed Rail Authority is optimistic that moving forward independently of the Trump administration presents an “opportunity” to employ global best practices proven successful in high-speed rail systems worldwide. The authority expressed its commitment to advance the project despite facing numerous challenges in securing reliable funding.
