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California has decided to drop its lawsuit against the Trump administration, which sought to reinstate $4 billion in federal funding for the state's high-speed rail project.
The lawsuit was initially filed after the Federal Railroad Administration, under President Donald Trump, withdrew the funds due to concerns about the project's delays and rising costs. The California High-Speed Rail Authority (CHSRA) voluntarily dismissed the case, stating that the federal government is not a reliable partner for the project.
According to The Hill, the CHSRA spokesperson explained that federal requirements often added costs and delays without enhancing the project, prompting the decision to proceed independently. The project, which aims to connect Los Angeles and the Bay Area, has faced criticism for its escalating budget, now estimated at $128 billion.
Fox Business reported that the state will continue the project using funds from Proposition 1A and the Cap-and-Invest program. The CHSRA is also seeking private investors to support the project, with plans to finalize partnerships by summer 2026.
The decision to drop the lawsuit comes after U.S. District Judge Dale Drozd rejected a motion by the Trump administration to dismiss the case. Despite the loss of federal funding, California Governor Gavin Newsom and state lawmakers remain committed to the project, which they believe will transform the state's transportation infrastructure.