High-Speed Rail Collapse: California Drops $4B Fight

California has abandoned its legal effort to reclaim billions in federal funding for its troubled high-speed rail project, formally ending a high-profile court battle with the Trump administration. The decision marks a significant setback for the long-delayed high-speed rail system, which has faced years of cost overruns and missed deadlines.

Court records show Attorney General Rob Bonta’s office filed a notice on Dec. 23 dismissing the lawsuit on behalf of the California High-Speed Rail Authority. The authority had sought to restore roughly $4 billion in federal funds withdrawn earlier this year. An authority spokesperson told Fox News Digital, “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.”

The Federal Railroad Administration pulled the funding after concluding the project could not be delivered as promised. In a letter to the authority, the agency cited mounting delays, ballooning costs, and major change orders, noting that substantial federal funds had already been spent without meeting key milestones.

Transportation Secretary Sean Duffy announced the funding withdrawal in July, calling the project a “boondoggle.” Duffy said, “This is California’s fault. Governor Newsom and the complicit Democrats have enabled this waste for years.” President Trump echoed the criticism at the time, labeling it a “high speed train to nowhere.”

Despite the funding loss, state officials insist construction will continue. The authority said federal dollars account for about 18% of total costs, with most funding coming from state sources. Officials are now seeking private investors, claiming 171 miles are under design or construction between Merced and Bakersfield.

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