Newsom filed a lawsuit after the Trump administration canceled over $4 billion in federal funding for California’s high-speed rail project, calling the move political and harmful to the Central Valley economy. This is reported by the railway transport news portal Railway Supply.

The governor criticized the decision, saying it threatens thousands of jobs and undermines America’s infrastructure goals. He stressed that California is laying tracks and leading in the nation’s rail development efforts.

The California High-Speed Rail may lose $4 billion in federal funding as state authorities push forward with the first segment linking Madera and Poplar Avenue in Kern County.

Newsom vowed to fight what he described as an illegal termination of grant agreements. He said the state will explore every option to restore funding and keep the project moving forward.

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Federal Justification and Newsom’s Response

Transportation Secretary Sean Duffy defended the funding withdrawal, citing sixteen years of delays, zero completed high-speed tracks, and skyrocketing costs. He labeled the project a “train to nowhere” and claimed federal dollars cannot serve as an endless subsidy.

Newsom pushed back, arguing that California remains ahead of other projects and will not allow political interference to derail progress. He accused the administration of abandoning American leadership in infrastructure.

Political Clash and What’s Next

Donald Trump echoed Duffy’s criticism on Truth Social, calling the project “a boondoggle” and celebrating that taxpayers were freed from funding “a costly and unnecessary scheme.” He said no more federal money will support this plan.

A 300-page compliance report revealed major issues, including missed deadlines, mismanagement, and budget shortfalls. It also confirmed that despite breaking ground more than a decade ago, not a single mile of track has been completed.

The Department of Transportation plans to review other grants linked to the project. Meanwhile, California officials promise more legal action, signaling a long battle over the future of America’s high-speed rail system.

Source: www.foxla.com

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