California abandons legal battle to restore $4B in federal funding for long-delayed high-speed rail project

California dropped its lawsuit against the Trump administration after it pulled roughly $4 billion in federal funding for the state’s high-speed rail project.

Court records show that California Attorney General Rob Bonta’s office filed a notice on Dec. 23 voluntarily dismissing the lawsuit without prejudice on behalf of the California High-Speed Rail Authority (CHSRA), which had been seeking to have the federal funding reinstated.

"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 said in a statement to Fox News Digital.

"The Federal Railroad Administration stated that all work performed by the Authority – whether undertaken as part of cooperative agreements or otherwise – remains ‘at risk’ and may not receive funding. Combined with the Administration’s persistent lack of good-faith engagement, this made clear that the federal government is unlikely to uphold its commitments to California. As a result, the State has opted to move forward without the Trump administration. We regret that they will not share in California’s success," the spokesperson added.

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Transportation Secretary Sean Duffy announced in July that he was pulling the plug on the long-delayed project, calling it a "boondoggle."

"This is California’s fault. Governor Newsom and the complicit Democrats have enabled this waste for years. Federal dollars are not a blank check — they come with a promise to deliver results. After over a decade of failures, CHSRA’s mismanagement and incompetence has proven it cannot build its train to nowhere on time or on budget," said Duffy.

President Donald Trump echoed Duffy's sentiment at the time, calling the project a "high speed train to nowhere."

In a letter to the CHSRA, the Federal Railroad Administration said it was pulling federal funding, roughly $4 billion in commitments, after concluding the project could not be delivered as promised.

The agency cited mounting delays and ballooning costs, including major change orders, saying substantial federal funds had already been spent despite the authority’s failure to meet key milestones.

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CHSRA launched a formal process on Dec. 19 to attract private investors and developers by summer 2026 as part of efforts to deliver the high-speed rail project "faster, smarter and more economically."

"Interest from the private sector in investing in California’s high-speed rail project is strong and continues to grow," said Ian Choudri, the CEO of the CHSRA.

"Today’s procurement formalizes efforts to partner with private investors and developers, with the shared goal of delivering California’s transformational program faster, smarter, and more economically," he said. "By leveraging private sector innovation and best practices against strong, stable state funding, we can maximize the value of California’s investment and accelerate delivery of high-speed infrastructure throughout the state."

In a press release, CHSRA said 171 miles of the project are under design and construction between Merced and Bakersfield, with nearly 80 miles of guideway complete and dozens of major structures fully completed.

An authority spokesperson told Fox News Digital the loss of federal funding will not derail the project or construction because most of the funding comes from the state through the voter-approved Proposition 1A and the Cap-and-Invest program. The spokesperson said federal dollars account for about 18% of total program expenditures and that the state is moving forward without them.