OAKLAND, Calif. — California has officially withdrawn a lawsuit against the Trump administration concerning the withdrawal of $4 billion in federal funding for the state’s high-speed rail project.
The U.S. Transportation Department cut the budget for this rail initiative, which is planned to link San Francisco and Los Angeles, claiming there was no viable development plan for its substantial Central Valley section. In response, the California High-Speed Rail Authority quickly initiated legal proceedings, with Governor Gavin Newsom denouncing the decision as a baseless political move aimed at penalizing California.
This week, the Authority stated it would pursue alternative funding channels to advance the rail project, now estimated to exceed $100 billion in total costs.
According to a spokesperson for the rail authority, this change reflects the State’s view that the federal government is not a trustworthy ally in the pursuit of high-speed rail development in California.
Despite previous criticisms from President Trump, who called the project a “train to nowhere,” the authority plans to engage private investors and reported securing $1 billion annually through California's cap-and-trade program until 2045.
This program aims to curtail emissions from major polluters in the state, offering financial resources for various climate-change-related projects and initiatives that benefit public transportation. The rail authority views this pivot towards self-reliance and private investment as a fresh opportunity to implement best practices seen in successful high-speed rail systems worldwide.
