California Ends Lawsuit Against Federal Government Over High-Speed Rail Funding

The Trump administration canceled $4 billion in funding for the project in July.

A drone view of a high-speed rail bridge in Fresno, Calif., on June 8, 2025. Fred Greaves/ Reuters

California dropped its lawsuit this week against the Trump administration over the federal government’s decision to pull $4 billion in funding for the state’s long-delayed high-speed rail project.

The California High-Speed Rail Authority filed a notice of voluntary dismissal on Dec. 23 in the case with the U.S. District Court for the Eastern District of California. The dismissal is without prejudice, meaning the lawsuit could be refiled in the future.

The dismissal came two weeks after Judge Dale Drozd rejected the Department of Justice’s argument that the authority should have filed its lawsuit in the U.S. Court of Federal Claims.

The U.S. Department of Transportation withdrew the funding in July from the bullet train project, which is supposed to connect San Francisco to Los Angeles.

The Trump administration has said the authority had “no viable plan” to finish work on a large segment of the project in the state’s Central Valley. Both President Donald Trump and Secretary of Transportation Sean Duffy have criticized the delayed project as a “train to nowhere.”

California voters approved the project’s initial $10 billion bond in 2008. The project’s price tag was originally expected to be $33 billion, with a completion date in 2020. Costs have ballooned to between $89 billion and $128 billion, and the project is projected to be completed by 2033.

So far, 50 key structures—bridges, overpasses, underpasses, viaducts, and 70 miles of guideway—have been completed.

The authority sued in federal court on July 17 to reinstate the funds, calling the funding cut politically motivated and unlawful. California Gov. Gavin Newsom, a Democrat, said at the time that the federal funding reduction was “a political stunt to punish California.”

The lawsuit argued that Trump’s actions are part of a long-running pattern of political retaliation, pointing to his first administration’s attempt to revoke high-speed rail funding the day after California sued to block his emergency declaration for a border wall.

The High-Speed Rail Authority said it has met every requirement under its agreements, pointing to multiple federal reviews—including one as recent as February—that found the project to be in compliance.

Last week, the authority said it would seek out other funding sources to finish the project.

The authority’s CEO, Ian Choudri, said that on Dec. 19, the authority had launched a procurement process that “formalizes efforts to partner with private investors and developers, with the shared goal of delivering California’s transformational program faster, smarter, and more economically.”

A spokesperson for the authority said the decision to withdraw the federal lawsuit reflects the state’s view that the federal government “is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California.”

“Federal requirements have, at times, hindered project delivery by adding cost and delays without adding value—creating inefficiencies, constraining innovation, and slowing construction,” the spokesperson told The Epoch Times.

The Epoch Times reached out to the Department of Justice for comment but received no response.

Chase Smith, Kimberly Hayek, and The Associated Press contributed to this report.