Latest News

California drops lawsuit against Trump's revocation of high-speed rail funding

California has dropped its lawsuit against the Trump administration's decision to?cancel over $4 billion of federal grants for California's high-speed railway project. The state announced this late Friday. California High-Speed Rail Authority said that Tuesday's decision to drop the lawsuit reflects the state's "assessment" that the federal government was not a trustworthy, reliable or constructive partner for advancing high-speed railroad in California. The agency stated that it will move forward without federal funding. It added that only 18% program expenditures have been funded by federal funds. A judge rejected an attempt to dismiss the lawsuit?this month. The U.S. Transportation Department or White House did not respond immediately to comments.

The latest 'headache for a project plagued by delays and cost overruns' Governor Gavin Newsom said that the termination of grants by Republican President Donald Trump was "petty political retribution" motivated by Trump's personal animus towards California and the high speed rail project. The funding cuts are just the latest obstacle in the 16 year effort to connect Los Angeles and San Francisco with a three hour train ride. This project would provide the fastest passenger rail service available in the United States. The project, originally planned to be completed by 2020 and cost $33 billion is now estimated to cost between $89billion and $128billion, with service expected to begin by 2033. California voters approved the first bond issue in 2008. Since then, more than 50 major structures have been built, including bridges overpasses undercrossings viaducts. The project has also completed almost 80 miles of guideway. In August, the Transportation Department canceled $175 million in funding for four projects in the high-speed train program. This was after the federal government canceled $4 billion in grants. California's agency announced this week that it would begin a process of attracting private investors and developers before summer 2026. The agency stated on?Friday that the loss of federal funds will not derail construction and the project. It added it was making progress. The agency stated that rather than continue to spend money and time fighting the termination, it is moving ahead without them.

In June, the Federal Railroad Administration released a 315 page report that found the project plagued with missed deadlines. It also revealed budget shortfalls as well as questionable projections of ridership. Trump withdrew $929 million of federal grants during his first term. The state challenged the move, which led to a settlement under Democratic President Joe Biden in 2021, restoring the entire amount. Reporting by David Shepardson, Washington

(source: Reuters)