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California drops lawsuit seeking to reinstate federal funding for the state's bullet train

California will seek private investment and use $1 billion annually from its cap-and-trade program to fund the $100 billion high-speed rail project after dropping the federal lawsuit.

  • Recently, California dismissed its lawsuit challenging the federal withdrawal of funding, and the California High-Speed Rail Authority will pursue private investors to complete the project.
  • President Donald Trump and his administration argued the California High-Speed Rail Authority had `no viable plan` to finish a Central Valley segment, while Gov. Gavin Newsom called the withdrawal `a political stunt to punish California.`
  • President Donald Trump used Truth Social to deride the rail plan, stating `The Railroad we were promised still does not exist, and never will,` while project critics called it `Severely Overpriced, Overregulated, and NEVER DELIVERED.`
  • Saying federal ties were unreliable, the California High-Speed Rail Authority framed the dismissal as an opportunity to pursue proven global best practices without the Trump administration, while the U.S. Transportation Department offered no immediate comment.
  • Relying on state funds shifts the project's fiscal and policy context as California's cap-and-trade program recently secured $100 billion through 2045 for climate and housing programs.
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California drops lawsuit seeking to reinstate federal funding for the state's bullet train

California has dismissed a lawsuit officials filed against the Trump administration over the federal government's withdrawing of $4 billion for the state's long-delayed high-speed rail project.

·United States
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KTVB broke the news in Boise, United States on Friday, December 26, 2025.
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