California this week withdrew a lawsuit that officials had filed against the Trump administration concerning the federal government’s decision to pull $4 billion in funding for the state’s long-delayed high-speed rail project.
The U.S. Transportation Department withdrew funding for the bullet train, intended to connect San Francisco to Los Angeles, in July. The Trump administration had stated that the California High-Speed Rail Authority had not demonstrated adequate progress to complete a significant segment of the project in the agricultural Central Valley.
The authority promptly initiated legal action, with Democratic Governor Gavin Newsom characterizing the federal government’s decision as “a political stunt to punish California.”
This week, the authority announced its intention to concentrate on alternative funding avenues to finalize the project, which carries an estimated cost exceeding $100 billion.
“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,” an authority spokesperson said in a statement.
The Department of Transportation did not provide a response when asked for comment. Both President Donald Trump and Transportation Secretary Sean Duffy had previously labeled the project a “train to nowhere.”
“The Railroad we were promised still does not exist, and never will,” Trump posted on his social media platform Truth Social in July. “This project was Severely Overpriced, Overregulated, and NEVER DELIVERED.”
The authority’s choice to discontinue the lawsuit coincides with its efforts to attract private investors for the high-speed rail project. The project recently obtained $1 billion in yearly funding from a state program through 2045.
This program establishes a decreasing cap on overall planet-warming emissions for major polluters within the state. Companies are required to either lower their emissions, purchase allowances from the state or other enterprises, or finance initiatives designed to counteract their emissions. Revenue generated by the state from these sales supports climate-change mitigation, affordable housing, and transportation projects, alongside providing utility bill credits for California residents.
The rail authority indicated that its change in emphasis, moving away from federal funding, presents “a new opportunity.”
“Moving forward without the Trump administration’s involvement allows the Authority to pursue proven global best practices used successfully by modern high-speed rail systems around the world,” a spokesperson said in a statement.