OAKLAND, Calif. (AP) — California this week dropped a lawsuit officials filed against the Trump administration over the federal government's withdrawal of $4 billion for the state’s long-delayed high-speed rail project.
The U.S. Transportation Department slashed funds for the bullet train aimed at connecting San Francisco to Los Angeles in July, stating the California High-Speed Rail Authority had “no viable plan” to complete a large segment of the project in the farm-rich Central Valley.
In response, the authority quickly filed a lawsuit, with Democratic Gov. Gavin Newsom labeling the federal decision “a political stunt to punish California.”
However, the authority has announced that it will now shift focus to securing alternative funding sources to complete the project, which is projected to cost more than $100 billion. “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,” an authority spokesperson stated.
The decision to drop the lawsuit also comes as the authority looks for private investors to support the bullet train. Notably, the project has recently obtained $1 billion in annual funding from the state’s cap-and-trade program running through to 2045.
This program sets declining limits on total greenhouse gas emissions in California from major polluters, providing a pathway for companies to either reduce emissions or fund offsetting projects, as well as projects aimed at climate-change mitigation.
Additionally, the rail authority's realignment toward state and private funding offers “a new opportunity.” A spokesperson noted, “Moving forward without the Trump administration’s involvement allows the Authority to pursue proven global best practices used successfully by modern high-speed rail systems around the world.”
