California ditches fight with Trump for high-speed rail funds

"California has withdrawn a lawsuit against the Trump administration that sought to recover roughly $4 billion in federal funds pulled from the state's long-delayed high-speed rail project, after concluding it can no longer rely on the federal government to help deliver the system. The suit was filed after the Federal Railroad Administration began canceling federal grants for the project totaling about $4 billion, arguing the California High-Speed Rail Authority had failed to deliver on commitments amid years of delays and cost overruns."

"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 spokesperson for the California High-Speed Rail Authority said in an email. The Federal Railroad Administration had warned that all work performed by the authority remained at risk of nonpayment, the spokesperson said, leading the state to conclude that the administration was unlikely to uphold its commitments."

"State officials challenged the action in court, saying that the administration was violating binding grant agreements. But California has now opted to drop the case and press ahead without backing from the federal government under President Donald Trump. The California High-Speed Rail Authority launched an effort to bring in private investors on Dec 19, issuing a request for qualifications to select a co-development partner to help deliver the project faster."

California withdrew its lawsuit seeking roughly $4 billion in federal grants after concluding the federal government cannot be relied on to help deliver the long-delayed high-speed rail. The Federal Railroad Administration began canceling grants, saying the California High-Speed Rail Authority failed to meet commitments amid delays and cost overruns; state officials had sued claiming the cancellations violated binding grant agreements. California dropped the case and decided to proceed without federal backing, citing federal warnings that work remained at risk of nonpayment and federal requirements that added cost and delay. The authority is seeking private co-development partners as costs rose toward $128 billion.

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