California withdraws lawsuit challenging Trump’s $4B high-speed rail funding cut

California withdrew its lawsuit against the Trump administration concerning the rescission of approximately $4 billion in federal funding for the state’s high-speed rail project. The decision, announced on December 23, 2025, stems from the state’s assessment that the federal government is an unreliable partner in advancing the project. A spokesperson for the California High-Speed Rail Authority stated that the Federal Railroad Administration had placed all project work “at risk” of losing funding. The Authority believes this presents an opportunity to streamline project delivery, arguing that federal requirements have increased costs and slowed construction.

This development follows criticism of the project, originally approved by voters in 2008 as a San Francisco to Los Angeles bullet train, which has faced delays and cost increases, and has been downsized to a Central Valley segment expected to partially open in 2033. U.S. Transportation Secretary Sean Duffy previously labeled the project a “boondoggle,” citing mismanagement and incompetence.

Despite the loss of federal funding, the Authority maintains that construction will continue, supported by state funding sources, including an extension of the cap-and-trade program, which secures $1 billion annually through 2045. Only 18% of the program’s expenditures have come from federal funds, according to the Authority.

(Source：San Luis Obispo Tribune)