California high-speed rail funding lawsuit ends as strategy shifts

The California High-Speed Rail Authority has ended its court fight over California high-speed rail funding, according to court records submitted on 23 December 2025, including this court filing.

This is reported by the railway transport news portal Railway Supply.

The filing shows the Authority voluntarily dismissed its legal challenge after federal grant support for the state’s high-speed rail programme was terminated.

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The Authority brought the case against the US Department of Transportation and the Federal Railroad Administration (FRA) after the decision to end grant support for the project. The dispute was pending in the US District Court for the Eastern District of California as California High-Speed Rail Authority v. U.S. Department of Transportation, No. 2:25-cv-02004.

Court timeline for the California High-Speed Rail Authority dismissed lawsuit

Court documents show the withdrawal came about two weeks after the court denied the federal defendants’ motion to dismiss. Instead of seeking a ruling on the merits, the Authority chose to withdraw the action voluntarily, bringing the case to a close without further proceedings, as reported by Reuters.

FRA terminated federal funding and the Authority’s response

At the centre of the dispute was the FRA’s move to terminate federal grant funding that had been awarded to support construction and development of the high-speed rail system. In its complaint, the Authority said the programme formed part of California’s long-term transport planning and environmental policy. It also described the project as contributing to the state’s response to transportation demand, greenhouse gas emissions and climate change, while supporting economic development in the Central Valley and other regions.

The FRA has not issued a public statement in response to the voluntary dismissal. The termination of federal funding remains in place, and the court case will now close.

California high-speed rail private investment plan

In an announcement released the same day as the filing, the Authority said it would shift its focus toward attracting private capital. It stated that it had initiated a process to bring private investors and developers to the Authority by summer 2026, but did not provide details on the structure of the investment process or the scale of private funding being sought—an approach also noted by Railway Supply.

California’s high-speed rail project has faced repeated delays, funding gaps and legal disputes since construction began. The move toward private investment signals a change in strategy as the Authority searches for alternative sources of finance after the loss of federal support.

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