OAKLAND, Calif. – This week, California dropped a lawsuit officials filed against the Trump administration. The suit involved the federal government’s withdrawal of $4 billion in federal grants for the state’s high-speed rail project.
The U.S. Department of Transportation cut funds for the project, which sought to connect San Francisco to Los Angeles, in July. USDOT claimed the California High-Speed Rail Authority had no “viable plan” to finalize a large portion of the operation in the Central Valley.
Subsequently, the authority fired right back with a lawsuit.
“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 authority expressed in a statement.
Democratic Gov. Gavin Newsom additionally commented on USDOT’s actions. Describing the actions as “a political stunt to punish California.”
Earlier in July, President Trump also made comments criticizing the project via Truth Social.
“The Railroad we were promised still does not exist, and never will.” Trump continued. “This project was Severely Overpriced, Overregulated, and NEVER DELIVERED.”
This week, the authority announced its new plan. Stating that it would focus on other means of funding to complete the project.
Estimates suggest the project could cost more than $100 billion.
The authority decided to drop the lawsuit after it began seeking private investors to help complete the venture.
The project also received $1 billion in yearly funding from California’s cap-and-trade program. The program lasts until 2045.
The program establishes a declining limit on total carbon emissions from major contributors in the state. Companies must adhere to the limits. Additionally, they must purchase allowances from the state, other businesses, or support projects that aim to offset their emissions. The state funds affordable housing, transportation projects, climate-change mitigation, and utility bill subsidies for residents with the funds received.
“Moving forward without the Trump administration’s involvement allows the Authority to pursue proven global best practices used successfully by modern speed-rail systems around the world,” an authority spokesperson stated.
