California Drops Lawsuit Over Canceled Federal Grants for High-Speed Rail Project

California has withdrawn its lawsuit challenging the Trump administration’s cancellation of more than $4 billion in federal grants for the state’s high-speed rail project, the California High-Speed Rail Authority confirmed on Friday. The agency said the decision reflects its conclusion that the federal government is “not a reliable, constructive, or trustworthy partner” in advancing the project, which aims to connect Los Angeles and San Francisco by high-speed rail. Despite a judge recently declining to dismiss the case, the authority said it would rather redirect time and resources toward moving the project forward.

State officials emphasized that the loss of federal funding will not halt construction, noting that only about 18% of expenditures to date have come from federal sources. The project, long plagued by delays and rising costs, is now projected to cost between $89 billion and $128 billion, with its first phase expected to open by 2033—far beyond the original $33 billion estimate and 2020 completion target. The state says it has already completed nearly 80 miles of guideway and built more than 50 major rail structures, including bridges, overpasses, and viaducts.

The rail authority said it is now pivoting toward attracting private investors and developers by 2026 and will rely on new state legislation that secures $1 billion in annual funding through 2045. While the Federal Railroad Administration has criticized the project over missed deadlines and budget shortfalls, Governor Gavin Newsom has previously argued that the federal funding cuts were politically motivated. For now, the state says it remains committed to completing the nation’s first true high-speed rail corridor—even without federal partnership.

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