California drops lawsuit over $4 billion high-speed rail funding withdrawal

California has dropped its lawsuit against the Trump administration after it withdrew nearly $4 billion in federal funding for a high-speed rail project in the state.

Court records show that California Attorney General Rob Bonta’s office filed a notice on Dec. 23 voluntarily dismissing the lawsuit without prejudice on behalf of the California High-Speed ​​Rail Authority (CHSRA), which was seeking federal funding to be restored.

“This action reflects the state’s assessment that the federal government is not a reliable, constructive and trustworthy partner in the development of high-speed rail in California,” a spokesperson for the authority said. In a statement To the Sacramento Bee.

“The Federal Railroad Administration has stated that all work undertaken by the authority – whether undertaken as part of cooperative agreements or otherwise – remains ‘at risk’ and may not receive funding,” the spokesperson added.

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Transport Minister Sean Duffy announced in July that he would halt the long-awaited project, describing it as “pointless”.

“This is California’s fault. Governor Newsom and complicit Democrats have allowed this waste for years. Federal dollars are not a blank check — they come with the promise of results. After more than a decade of failures, CHSRA’s mismanagement and incompetence has proven that it cannot build its train to anywhere on time or on budget,” Duffy said.

President Donald Trump echoed Duffy’s sentiments at the time, calling the project “a high-speed train that leads nowhere.”

in message To CHSRA, the Federal Railroad Administration said it would withdraw federal funding, nearly $4 billion in commitments, after concluding that the project could not be delivered as promised.

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Work continues on the Hanford High-Speed ​​Rail Bridge in California in Hanford, California, on Tuesday, January 29, 2024. (Robert Gauthier/Los Angeles Times via Getty Images/Getty Images)

The agency cited mounting delays and ballooning costs, including major change orders, saying significant federal funds had already been spent despite the authority’s failure to meet milestones.

CHSRA launched a formal process on December 19 to attract private investors and developers by summer 2026 as part of efforts to deliver a “faster, smarter and more economical” high-speed rail project.

“Private sector interest in investing in a high-speed rail project in California is strong and continues to grow,” said Ian Chowdhury, CEO of CHSRA.

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“Today’s purchase formalizes efforts to partner with private investors and developers, with a shared goal of delivering California’s transformational program faster, smarter and more economically,” he said. “By leveraging private sector innovation and best practices versus strong and stable state funding, we can maximize the value of California’s investments and accelerate the delivery of high-speed infrastructure across the state.”

In a press releaseCHSRA said 171 miles of the project are under design and construction between Merced and Bakersfield, with approximately 80 miles of routing completed and dozens of major structures fully completed.