California has ended its lawsuit over $4 billion in grant funding cancelled by the Trump administration, Bloomberg reports, deciding it can on longer rely on help for the project from the federal government.
“This action reflects the state’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California,” a representative of the California High-Speed Rail Authority said in an email to the news service. The representative also said the move would aid construction progress: “Federal requirements have, at times, hindered project delivery by adding cost and delays without adding value.”
The Federal Railroad Administration cancelled the funding in July following a review that it said found the California project was in non-compliance with terms of the grants in nine areas [see “FRA kills funding for California high speed …,” Trains.com, July 16, 2025]. The state sued days later, with Gov. Gavin Newsom saying in a press release that the cancellation was political retribution “motivated by President Trump’s personal animus toward California and the high-speed rail project, not by facts on the ground.” [See “California sues over FRA cancellation …,” July 18, 2025].
California’s move comes despite a judge’s decision earlier this month rejecting a bid by the Trump administration to throw out the California lawsuit on the grounds it was filed in the wrong court.
Earlier this year, Newsom and state legislators agreed on a deal providing $1 billion in state funding annually through 2045.
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