Newsom’s California drops lawsuit against Trump admin over cancellation of $4 BILLION in high-speed rail funds

"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,” a California High-Speed Rail Authority spokesperson said, per the Sacramento Bee. “The Federal Railroad Administration stated that all work performed by the Authority – whether undertaken as part of cooperative agreements or otherwise – remains ‘at risk’ and may not receive funding.”

When California launched the lawsuit, Newsom had called the withdrawal of funds “a political stunt to punish California.”

The rail authority spokesperson claimed the state views the withdrawal as a chance to simplify how the project is delivered, arguing that federal rules have sometimes increased expenses and delayed progress without providing meaningful benefits.

California’s high-speed rail initiative has faced repeated setbacks and rising costs, fueling criticism from opponents and increased attention from federal officials. Approved by voters in 2008, the project was initially promoted as a 3-hour bullet train connecting San Francisco and Los Angeles. Over time, the scope has been reduced, with the first operating segment now planned for a portion of the Central Valley in 2033.

In July, US Transportation Secretary Sean Duffy labelled the effort a “boondoggle,” faulting California, Newsom, and Democrats for what he called “a decade of failures.” “Federal dollars are not a blank check – they come with a promise to deliver results,” Duffy said at the time. “After over a decade of failures, CHSRA’s mismanagement and incompetence has proven it cannot build its train to nowhere on time or on budget.”