California Drops Suit For Rail Project Funding
California’s embattled high-speed rail project just hit another major turn — and this one was a long time coming. On December 23, California quietly dropped its lawsuit against the Trump administration over the loss of $4 billion in federal funding, effectively conceding what many observers had already concluded: the federal government, under President Trump, wants no part of California’s “train to nowhere.”
The lawsuit, originally filed by the California High-Speed Rail Authority (CHSRA), had aimed to claw back the funding that the Federal Railroad Administration (FRA) rescinded in 2019, citing ballooning costs, missed milestones, and chronic mismanagement. But now, rather than pursue it further in court, Attorney General Rob Bonta’s office voluntarily dismissed the case, in a move that speaks volumes — not just about the legal prospects, but about the project’s overall credibility.
In a statement to Fox News Digital, the CHSRA spun the decision as a principled retreat, saying the state had determined that the federal government under Trump was “not a reliable, constructive, or trustworthy partner.” But that’s a convenient narrative. In truth, Trump officials made it clear years ago they would not bankroll a project that consistently failed to meet the conditions of its own grant agreement. As Transportation Secretary Sean Duffy bluntly put it:
“Federal dollars are not a blank check… CHSRA’s mismanagement and incompetence has proven it cannot build its train to nowhere on time or on budget.”
That’s not hyperbole. After more than a decade, the only completed segment — between Merced and Bakersfield — is still years from actual operation, and even if finished, would connect two low-density cities in the Central Valley, far from the originally promised route from Los Angeles to San Francisco.
The FRA’s position hasn’t changed: the project is chronically over budget, repeatedly behind schedule, and plagued by administrative chaos. According to their review, substantial federal funds were spent without meaningful progress, and continued funding would be a poor investment for American taxpayers.
And yet, CHSRA claims that all is well — or at least, manageable. The agency says the loss of federal funding won’t derail construction because only 18% of the total program expenditures depended on those funds. Most of the money, they argue, will continue flowing from Proposition 1A, passed by voters in 2008, and California’s Cap-and-Invest program. But even that explanation sidesteps the larger issue: voters were promised a different project, delivered on a different timeline, for a different price tag.
Now, to rebrand and rescue its image, CHSRA is launching a new private sector partnership drive aimed at attracting investors by summer 2026. The goal, according to CEO Ian Choudri, is to deliver the project “faster, smarter, and more economically” — a lofty promise after more than a decade of cost overruns and broken deadlines.
The numbers tell their own story. Of the 171 miles under development between Merced and Bakersfield, only 80 miles of guideway have been completed. There’s no revenue service, no functioning rail lines, and still no clarity on how the remaining sections — particularly through geologically and politically complex regions like the Tehachapi Mountains and Silicon Valley — will be funded, let alone built.
Meanwhile, the broader vision for California high-speed rail has shrunk dramatically from its grand beginnings. What was once billed as a world-class, carbon-neutral bullet train linking major urban centers is now, at best, a regional shuttle in the Central Valley, with a long wish list of expansions and not nearly enough funding to realize them.
By dropping the lawsuit, California is tacitly admitting what critics have said all along: the Trump administration wasn’t going to budge, and federal support is off the table for the foreseeable future. And with Trump now back in the political spotlight — and potentially back in the White House come January 2025 — that funding may never return.