In brief
The California High-Speed Rail Authority has decided to discontinue its legal battle with the Trump administration after funding was withdrawn for the ambitious transportation project. With costs exceeding $100 billion, the authority aims to tap into new sources of funding, including a $1 billion annual allocation from the state's cap-and-trade program, to secure the project’s future. Governor Gavin Newsom previously criticized the withdrawal as politically motivated, while the rail authority now expresses hope for pursuing global best practices in high-speed rail development without federal aid.
OAKLAND, Calif. (AP) — California this week dropped a lawsuit officials filed against the Trump administration over the federal government’s withdrawal of $4 billion for the state’s long-delayed high-speed rail project.
The U.S. Transportation Department cut funds for the bullet train intended to connect San Francisco to Los Angeles last July, citing the California High-Speed Rail Authority's lack of a “viable plan” for completing a crucial segment of the project in the agricultural Central Valley. Following the announcement, the authority promptly initiated a lawsuit, with Democratic Governor Gavin Newsom condemning the decision as a political maneuver aimed at harming California.
This week, the authority pivoted and announced it would pursue alternative funding sources to complete the project, estimated 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 stated.
The Transportation Department has yet to respond to inquiries about the case. Historically, both President Donald Trump and Transportation Secretary Sean Duffy have denounced the project as a “train to nowhere,” claiming that it was excessively over budget and overly regulated.
As the lawsuit was dismissed, the High-Speed Rail Authority expressed optimism, suggesting that moving ahead without federal intervention offers a chance to adopt best practices from successful modern high-speed rail systems worldwide.
In a move to secure financial backing, the project has recently obtained $1 billion annually from California's cap-and-trade program, which extends to 2045. This program limits total greenhouse gas emissions from major polluters, requiring them to reduce emissions, purchase allowances, or invest in emission-reducing projects.
The railroad, which was promised to residents, has yet to materialize, raising skepticism about its potential future completion amid changing political landscapes and funding strategies.
