Dalena Reporters l December 27, 2025
California has dropped its federal lawsuit challenging the decision by the administration of President Donald Trump to cancel more than $4 billion in federal grants for the state’s long‑delayed high‑speed rail project intended to connect San Francisco and Los Angeles, state officials said late on Friday.
The lawsuit, filed in July 2025 by the California High‑Speed Rail Authority, argued that the rescission of the funds was unlawful, but state authorities have now concluded the legal challenge was unlikely to succeed and chose to withdraw the case. Officials said abandoning the suit reflects the state’s view that the federal government is no longer a reliable or constructive partner in advancing the project.
Only about 18 percent of the program’s expenditures had come from federal funds, and California plans to proceed with construction efforts without federal support, while seeking private investment and relying on state funding, including new annual allocations secured through legislation.
The high‑speed rail project, which has been under development for more than a decade, has faced major delays and ballooning costs, with revised estimates placing total expenses well above early projections. Despite these challenges, the authority said the shift away from federal funding provides an opportunity to focus on alternative financing and delivery strategies aimed at bringing the rail system closer to completion.