California high-speed rail lawsuit dropped after grant cuts
27.12.2025
California high-speed rail lawsuit is now off the table after the state withdrew its legal challenge to the Trump administration’s cancellation of more than $4 billion in federal grants for the project, as reported by Reuters. California says it still plans to move ahead, aiming to depend as little as possible on federal funding.

This is reported by the railway transport news portal Railway Supply.
Why California withdrew the lawsuit over high-speed rail funding?
The lawsuit was filed last July by the California High-Speed Rail Authority, after the Trump administration ended the federal grants. In its statement, the Authority said it chose to drop the case after deciding the federal government is an “unreliable and untrustworthy partner” for advancing high-speed rail in California.
Project continues after more than $4 billion in federal funding was canceled
Even without federal support, California says the long-delayed initiative will continue. The state also noted that federal contributions have represented only about 18% of total expenditures so far.
What the decision means for the California high-speed rail project?
With the California high-speed rail lawsuit dropped, the state is leaning into a strategy of delivering the California high-speed rail project with minimal reliance on federal backing.
For background on the dispute over the federal grant termination and the legal challenge, see coverage from Railway Supply and a related announcement from California Governor Gavin Newsom’s office.
The state’s message is that work will continue even without the federal grants that had been part of the funding plan.
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