OAKLAND, Calif. (AP) — California this week dropped 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. The U.S. Transportation Department slashed funds for the bullet train aimed at connecting San Francisco to Los Angeles in July. The Trump administration has argued that the California High-Speed Rail Authority had no viable plan to complete a large segment of the project in the farm-rich Central Valley.
In response, the authority filed a lawsuit, with Governor Gavin Newsom labeling the federal government’s decision as 'a political stunt to punish California.' This week, the authority announced it would shift its focus to alternative funding sources to complete the project, with overall estimates indicating costs exceeding $100 billion.
'This action reflects the State’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California,' stated an authority spokesperson. President Trump and Transportation Secretary Sean Duffy have criticized the project in the past, calling it a 'train to nowhere.'
The rail authority's decision to withdraw the lawsuit comes amid efforts to find private investors willing to support the bullet train initiative. In recent developments, the project secured $1 billion in annual funding from California’s cap-and-trade program through 2045, which aims to mitigate climate change.
The program imposes a limit on emissions from major polluters, with companies required to reduce emissions, purchase allowances, or fund offset projects. The revenues generated support climate-change mitigation, affordable housing, and transportation initiatives in the state. The rail authority views its new strategic direction as an opportunity to pursue global best practices for modern high-speed rail systems.
In response, the authority filed a lawsuit, with Governor Gavin Newsom labeling the federal government’s decision as 'a political stunt to punish California.' This week, the authority announced it would shift its focus to alternative funding sources to complete the project, with overall estimates indicating costs exceeding $100 billion.
'This action reflects the State’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California,' stated an authority spokesperson. President Trump and Transportation Secretary Sean Duffy have criticized the project in the past, calling it a 'train to nowhere.'
The rail authority's decision to withdraw the lawsuit comes amid efforts to find private investors willing to support the bullet train initiative. In recent developments, the project secured $1 billion in annual funding from California’s cap-and-trade program through 2045, which aims to mitigate climate change.
The program imposes a limit on emissions from major polluters, with companies required to reduce emissions, purchase allowances, or fund offset projects. The revenues generated support climate-change mitigation, affordable housing, and transportation initiatives in the state. The rail authority views its new strategic direction as an opportunity to pursue global best practices for modern high-speed rail systems.
