California has quietly ended its legal battle with the federal government over billions of dollars in funding for the state’s long-delayed high-speed rail project.
Court records show that the office of California Attorney General Rob Bonta filed a notice on Dec. 23 dismissing the lawsuit without prejudice. The case was brought on behalf of the California High-Speed Rail Authority, which had sought to restore roughly $4 billion in federal funding.
The money was pulled earlier this year by the Trump administration.
State Says Federal Government Is No Longer a Reliable Partner
In a statement to Fox News Digital, a spokesperson for the California High-Speed Rail Authority said the decision reflected a broader loss of confidence in Washington.
“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 spokesperson said.
The authority said the Federal Railroad Administration warned that all work performed by the state could remain “at risk” and might never receive federal reimbursement.
Combined with what officials described as a lack of good-faith engagement, California decided to move forward without federal support.
Trump Administration Pulled the Funding in July
Transportation Secretary Sean Duffy announced in July that the administration was withdrawing federal commitments to the project.
Duffy called the rail line a “boondoggle” and placed blame squarely on state leadership.
“This is California’s fault,” Duffy said. “Federal dollars are not a blank check. After over a decade of failures, mismanagement, and incompetence, the authority has proven it cannot deliver results.”
President Donald Trump echoed that criticism, calling the project a “high-speed train to nowhere.”
Reuters coverage of U.S. infrastructure disputes
Why the Funding Was Revoked
In a formal letter to the California High-Speed Rail Authority, the Federal Railroad Administration said it was rescinding approximately $4 billion in funding commitments.
The agency cited mounting delays, ballooning costs, and major change orders. It said billions in federal funds had already been spent while the project failed to meet key milestones.
The rail system was originally pitched as a fast, affordable way to connect Northern and Southern California. Construction has instead faced years of delays and cost overruns.
According to federal oversight reports, the project’s estimated cost has more than doubled since it was first approved.
What Happens Next
By dismissing the lawsuit without prejudice, California technically preserves the option to refile in the future. For now, state officials say they are moving ahead without expecting help from the Trump administration.
The high-speed rail authority said it regrets that the federal government “will not share in California’s success,” though critics argue the project has yet to prove it can succeed.
The funding fight marks another flashpoint in the ongoing clash between California leaders and the Trump administration over infrastructure, spending, and federal oversight.
U.S. Department of Transportation statements
Whether California can complete the project without federal backing remains an open question.