California drops lawsuit against Trump's high-speed rail funding revocation

California has decided to drop its lawsuit against the Trump administration’s revocation of over $4 billion in federal grants for the state’s high-speed rail project. The California High-Speed Rail Authority stated the decision to abandon the suit reflects their assessment that the federal government is an unreliable partner for the project. Despite the loss of federal funding, the agency plans to proceed with the project, noting that only 18% of expenditures have come from federal sources and that it is seeking private investors.

Governor Gavin Newsom previously characterized the funding cuts as “petty, political retribution” motivated by former President Trump’s personal opposition to the project. The high-speed rail project, intended to link Los Angeles and San Francisco with a three-hour train ride, has faced significant delays and cost overruns, with current cost estimates ranging from $89 billion to $128 billion and an expected completion date of 2033, far from the original 2020 target.

The project has already completed substantial infrastructure, including over 50 major railway structures and nearly 80 miles of guideway. Legislation signed in September secures $1 billion annually for the program through 2045. A Federal Railroad Administration report in June highlighted issues with the project, including missed deadlines, budget shortfalls, and questionable ridership projections.

(Source：Business Standard)