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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.

  • The U.S. Transportation Department slashed funds for California's bullet train project, citing the state's lack of a "viable plan" to complete a segment in the Central Valley.
  • California dropped its lawsuit seeking to reinstate federal funding for the bullet train project, stating the federal government is not a "reliable, constructive, or trustworthy partner" in advancing high-speed rail.
  • The state is pursuing alternative funding sources, including private investors and cap-and-trade program funds, to continue the project estimated to cost over $100 billion.
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KTVB broke the news in Boise, United States on Friday, December 26, 2025.
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