California last week dropped a lawsuit officials filed against the Trump administration over the withdrawal of $4 billion in federal funding for the state’s long-delayed high-speed rail project.
In July, the U.S. Department of Transportation cut funding for a bullet train intended to connect San Francisco and Los Angeles. The Trump administration said the California High Speed Rail Authority has “no viable plan” to complete most of the project in the farm-rich Central Valley.
Officials quickly filed a lawsuit, and Democratic Gov. Gavin Newsom called the federal government’s decision “a political stunt to punish California.”
Officials announced last week that they would focus on other funding sources to complete the project, which is estimated to cost more than $100 billion.
“This action reflects the state’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in promoting California’s high-speed rail,” an agency spokesperson said in a statement.
The Department of Transportation did not respond to requests for comment. President Trump and Transportation Secretary Sean Duffy have previously criticized the project as a “train to nowhere.”
In July, President Trump said on his social media platform Truth Social that “the railroad that was promised still doesn’t exist and never will.” “This project was grossly overpriced, overregulated, and was never delivered.”
The authorities’ decision to drop the lawsuit comes as the group seeks support for the Shinkansen from private investors. The project recently secured $1 billion in annual funding from the state’s cap-and-trade program through 2045.
The program sets reduction limits on the total amount of global warming emissions by major polluters in the state. Companies must reduce their emissions, buy allowances from the state or other companies, or finance projects aimed at offsetting their emissions. The money the state receives from the sale will be used for climate change mitigation, affordable housing and transportation projects, and utility credits for Californians.
Railroad officials said shifting focus away from federal funding presents “new opportunities.”
“Moving forward without involvement from the Trump administration will allow the agency to pursue proven global best practices that are being used successfully in modern high-speed rail systems around the world,” the spokesperson said in a statement.
Austin writes for The Associated Press.
