WASHINGTON, Dec 26 (Reuters) – California has dropped a lawsuit challenging teh decision by the management of President Donald Trump to cancel more than $4 billion in federal grants for the state’s high-speed rail project, the state said late on Friday.
The California High-Speed Rail Authority, which filed the lawsuit in July, said the decision to abandon it reflected the state’s “assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California.”
The agency said it plans to move forward without federal funding, adding that only 18% of program expenditures for the long-delayed project have come from federal funds. A judge this month rejected a bid to dismiss the lawsuit.
The Federal Railroad Administration issued a 315-page report in June finding the project was plagued by missed deadlines, budget shortfalls and questionable ridership projections.
The U.S. Transportation Department said on Saturday that the FRA investigation demonstrated that after more than 15 years, the California high-speed rail authority “woudl be unable to deliver on their high speed rail promises on time or on budget.”
Construction on a high-speed rail project in Fresno County, California, US, on Monday, March 24, 2025. (david Paul Morris/Bloomberg)
California High-Speed Rail Project Secures Funding Despite Federal Grant Cancellations
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Despite recent cancellations of federal funding, the california High-Speed Rail Authority remains committed to completing the project, bolstered by consistent state funding and plans to attract private investment. The project has already made notable progress, constructing nearly 80 miles of guideway, including vital infrastructure like bridges and overpasses.
Recent Funding Challenges
In August, the Transportation Department canceled $175 million in funding for four projects associated with the high-speed rail program. This followed an earlier cancellation of $4 billion in federal grants. These actions raised concerns about the project’s future, but the California agency has responded with a strategy focused on option funding sources.
state Funding and Private Investment
The California High-Speed Rail Authority is actively pursuing private investors and developers, aiming to begin that process by summer 2026. Crucially, state legislation signed in September guarantees $1 billion in annual funding for the program through 2045, providing a stable financial foundation. The agency asserts that the loss of federal funds will not halt construction or derail the overall project.
“Rather than continuing to spend time and money challenging the termination, the state is moving forward without them,” the agency stated.
Historical Federal Funding Disputes
The project has faced federal funding challenges in the past.During his first term, former President Donald trump revoked $929 million in federal grants.California challenged this decision, ultimately reaching a settlement in 2021 under President Joe Biden, which restored the full amount of funding. However, the recent cancellations signal a renewed period of uncertainty regarding federal support.
Project progress to Date
Despite the funding hurdles, the California High-Speed Rail project has achieved substantial milestones. As of late 2024, construction has included:
* nearly 80 miles (130 km) of guideway completed.
* Construction of numerous bridges, overpasses, undercrossings, and viaducts.
These accomplishments demonstrate ongoing commitment and tangible progress toward connecting California’s major metropolitan areas with a high-speed rail network.
Future Outlook
The California High-Speed Rail Authority is focused on securing long-term financial stability through a combination of state funding and private investment. The project aims to eventually connect Los Angeles and San Francisco, offering a faster and more lasting transportation alternative. The agency’s proactive approach to diversifying funding sources suggests a determination to overcome recent setbacks and deliver on its enterprising goals.
Sources:
* Reuters: U.S. cancels $175 mln California high-speed rail funding
* California High-Speed Rail Authority Official Website
* Reuters: California high-speed rail project gets $1 billion annual funding boost
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