OAKLAND, Calif. (AP) — California officials have announced the withdrawal of a lawsuit against the Trump administration concerning the federal government's decision to revoke $4 billion allocated for the state's long-delayed high-speed rail project.
This development follows a funding cut by the U.S. Transportation Department in July, which claimed that the California High-Speed Rail Authority lacked a viable plan to complete significant segments of the rail line that connects San Francisco to Los Angeles.
In response to the funding withdrawal, California quickly filed a lawsuit, with Governor Gavin Newsom labeling the decision as a political maneuver by the federal government to punish the state.
Now, the authority intends to focus its efforts on alternative funding avenues to achieve completion of the project, which is projected to exceed $100 billion in total costs.
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 stated.
As part of its new strategy, the authority indicated it would actively seek private investors to help support the project, highlighting a commitment to ensure its progression without relying on Trump administration support.
Moreover, the project secured $1 billion in annual funding from California’s cap-and-trade program through 2045, which places a cap on emissions from major polluters in the state.
Following the announcement, the Transportation Department did not provide any immediate comment. The former President has previously criticized the rail initiative, labeling it as a train to nowhere on his social media platform.
As California shifts focus, the High-Speed Rail Authority sees this as an opportunity to adopt proven global best practices utilized by modern high-speed rail systems worldwide.
