California sues the Trump administration for withdrawing $4 billion in federal funding from its high-speed rail project, calling the move unlawful and politically motivated as the state fights to keep construction moving forward. This is reported by the railway transport news portal Railway Supply.

The state filed a lawsuit in Los Angeles federal court to block the cuts, arguing the decision violates binding agreements. The Trump administration defended the move, labeling the project overpriced and unlikely to succeed.

Trump Faces Lawsuit Over California Rail Funding
U.S. President Donald Trump pulled federal funding for the project last week. Joshua Sukoff/Shutterstock

Governor Gavin Newsom condemned the cut as “petty, political retribution,” noting visible progress in the Central Valley. He stressed that California plans to proceed, despite rising costs and federal resistance.

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Trump Administration and California’s Legal Showdown

The California High-Speed Rail Authority (CHSRA) insists the cancellation is illegal, pointing to multiple federal audits and more than 50 completed structures. CEO Ian Choudri stated, “Ending these grants without cause is not just wrong — it’s unlawful.”

Federal officials disagree. Transportation Secretary Sean Duffy called the project “a story of broken promises” after repeated cost overruns and missed deadlines. He said the government “must pull the plug” on wasteful spending.

Trump Administration and the Future of U.S. Rail

Originally expected to cost $33 billion and open by 2020, the San Francisco–Los Angeles line now exceeds $100 billion, with completion pushed to 2033. The current focus is a 171-mile segment in the Central Valley.

California plans to rely on cap-and-trade revenue and voter-approved bonds, with $1 billion annually from emissions trading already allocated. Newsom also suggested extending the program beyond 2030 for long-term funding stability.

The political battle carries high stakes. Supporters argue the lawsuit energizes labor unions and climate advocates, while critics view the project as an expensive failure. Meanwhile, China has spent $1.4 trillion to build 28,000 miles of high-speed rail, highlighting America’s lag in modern infrastructure.

Source: www.railtech.com

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