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California sues to challenge Trump's $4 billion high-speed rail clawback

CALIFORNIA, JUL 18 – California challenges the Trump administration over a $4 billion funding cut that threatens a rail project expected to create 15,000 jobs, with cost overruns pushing estimates to $106 billion.

  • On Thursday, Governor Gavin Newsom filed the lawsuit challenging the Trump administration's termination of $4 billion in federal funding for California's high-speed rail project.
  • Following a review, the Department of Transportation report concluded the 300-page document found “no viable path” to completing the California high-speed rail, prompting threats to cancel $4 billion in June.
  • Governor Gavin Newsom described the cut as `reeks of politics`, warning of 15,000 jobs at risk.
  • U.S. Transportation Secretary Sean P. Duffy said, 'It’s time for this boondoggle to die,' and said he would consult with the Department of Justice to recover funds.
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Forbes broke the news in United States on Thursday, July 17, 2025.
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