Passenger High Speed California drops suit over cancellation of high-speed rail funding

California drops suit over cancellation of high-speed rail funding

By Trains Staff | December 26, 2025

| Last updated on December 28, 2025


High-Speed Rail Authority says federal government is not ‘a reliable, constructive, or trustworthy partner’

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New five-track rail yard surrounded by farmland
The California high-speed project’s railhead facility, where materials will be delivered before being shipped to rail construction sites, is shown in September 2025. California High-Speed Rail Authority

SACRAMENTO — California has ended its lawsuit over $4 billion in grant funding cancelled by the Trump administration, Bloomberg reports, deciding it can no longer rely on help for the project from the federal government.

“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,” a representative of the California High-Speed Rail Authority said in an email to the news service. The representative also said the move would aid construction progress: “Federal requirements have, at times, hindered project delivery by adding cost and delays without adding value.”

The Federal Railroad Administration cancelled the funding in July following a review that it said found the California project was in non-compliance with terms of the grants in nine areas [see “FRA kills funding for California high speed …,” Trains.com, July 16, 2025]. The state sued days later, with Gov. Gavin Newsom saying in a press release that the cancellation was political retribution “motivated by President Trump’s personal animus toward California and the high-speed rail project, not by facts on the ground.” [See “California sues over FRA cancellation …,” July 18, 2025].

California’s move comes despite a judge’s decision earlier this month rejecting a bid by the Trump administration to throw out the California lawsuit on the grounds it was filed in the wrong court.

Earlier this year, Newsom and state legislators agreed on a deal providing $1 billion in state funding annually through 2045.

— To report news or errors, contact trainsnewswire@firecrown.com.

23 thoughts on “California drops suit over cancellation of high-speed rail funding

  1. Has California finally rescinded the ruling that requires every shortline in the state to junk their current motive power and buy new “green” locomotives? Would have been reasonable if the state also agreed to fully fund this power shift.

  2. It wasn’t going to be easy to build new right of way from skratch, through area piled on with utilities, through a lot of existing infrastructure and at same time would service to population of 3 million plus instead of bypassing them. But somehow they got the environmental reviews done, got a big part of the real estate secured and got a massive number of lawsuits settled.

    But i will also admit, Cali could have it made a lot easier on themselves by simply passing legislation putting some kinda of limitation on lawsuits (a lots, lots and lots of them) and more importantly they could have utilize one of the largest DOTs in the country with decades of experience building bridges, dealing with utilities and have significant real estate resources instead of a stand alone agency utterly dependent on 3rd parties.

    Feds in FY25 between appropriation and the bill appropriated 1 TRILLION to defense, T with a TRILLION, and in FY26 congress recently approved a $900 billion defense authorization. We are not a county that wants to build infrastructure, period.. Sorry, just building freeways is not going to cut it. Instead, we are county that wants to build the world most expensive aircraft carrier at $13.3 billion and who knows how much will spend to build a Trump battleship and his golden fleet. Sadly, who is truly walking away with billions in their pockets in this country?

  3. Questions. 1) Is the current right-of-way in the valley actually complete from end-to-end, or are there still areas of construction? 2) What is the timetable (?) for completion of all track in the valley to run trains in daily service? 3) When fully complete and operational, how many stations will be served and what is the estimate of passenger count. 4) What percentage of actual operating costs will be supplied by passenger fares? 5) Who will provide the operating and maintenance costs not covered by fares? 6) Will the experience gained in methods to acquire right-of-way ownership from current owners in the valley be, used to more cheaply take over land needed for the links to San Francisco and Los Angeles? 7) Will the tracks from the valley to the cities require tunneling, a potentially high cost?

    1. (7) Yes as best as I know. Extensive at both ends, Merced to San Jose, and Bakersfield to Burbank.

      (6) My feeling is no. I can’t see any lessening of those costs.

      (4) Who knows, but O+M is essentially irrelevant b/c capital amortization is an expense that can’t be wished away.

      (3) My guess, essentially the same as today’s Amtrak Gold Runner service.

    2. Charles, The initial operating segment of the CA HSR will have stations in Bakersfield, Hanford, Fresno, Madera and Merced. I believe that is two less (Wasco and Corcoran) than the Amtrak Gold Runners.

  4. This may be a good decision. That may keep the US government from meddling in the construction would delay the project more.

    1. (a) It’s not possible to do any worse than CalHSR has done.

      (b) There is NO construction under way on the key segments so it’s not possible to further delay something that isn’t there to delay.

  5. a citizen can file suit. Seem to remember Obama spenta lot of funds to rehabilitate those 50+ stored Amfleet 1s-

  6. For people who like trains it amazes me that there is ones who question this. Why are you even on this site if you aren’t for the expansion of rail? Lol

    1. Because I don’t see an expansion of rail. I see billions of dollars disappearing down a sewer.

      I like a lot of things including trains and cava wine. Doesn’t mean I’d go to the wine store, give the store a billion dollars and walking out with no wine in my tote bag.

  7. How can a noble humanitarium like Newsom justify spending $ 1 billion a year on the Moonbeam Rocket when the state can no longer afford to provide free medical care to illegal immigrants? Besides the fact the state is almost bankrupt and thousands of taxpayers and corporations are fleeing to Texas and other states.

    1. Where do illegal immigrants receive free medical care?

      Two answers: (1) California, full coverage. (2) Anywhere in America for emergency care. Which of course is elastic — as it is free to go to the ER, ERs are packed with people who otherwise would have to pay for care that they couldn’t possibly afford.

    2. If you can provide me a real source for that I’d like to renounce my US citizenship, I’m being scammed.

  8. Here’s a trivia question for all of you..Name the Adminstration that championed the investment, expansion and growth of the future of Amtrak & passenger rail???? Trick question.. NONE! Other than Biden’s passenger rail investment in the Transportation Funding bill passage has any Adminstration been a reliable, trustworthy or constructive (some openly destructive) partner in even growing traditional passenger rail service not to mention HSR. Amtrak’s network has consistently shrunk over its 50 yrs to the sad state it is in presently, it’s lost all it’s institutional knowledge through staffing cuts which facilitated its current dilemma. Without any advocacy from past Adminstrations it’s given a “thumbs up” to the current NEC (nothing else counts) regime that now is at the throttle to do as they please by sabotaging the national network & gouging state supported services or proposed service. The only was you get reliable, trustworthy & constructive cooperation from the politicians is coming with a bag off $$$$. This is how this country’s dysfunctional transportation “plan” is controlled the by all the enablers of the Hwy industrial complex continuing to build more roads which results in more expansion requiring more roads with more money we don’t have & despite the changing travel & demography patterns. The Aviation industry now wants taxpayers to fund the new advanced air traffic control system ($20+ billion) again with money we don’t have! It’s always the road & aviation “investment” mantra but conventional passenger rail or HSR “subsidy”. Why is the deficit “disaster” only conveniently used with those modes that are not building the wealth of a few? There will never be HSR in this country not because it’s too expensive or wouldn’t work in numerous regions it’s because it would upset the status quo which a few accumulate their wealth from.

    1. The real waste of money is Californians having to pay federal taxes which are constantly revoked for political reasons.

  9. My cat Burlington Northern Santa Fe is laughing his head off and he died years ago. The feds aren’t a reliable, trustworthy or constructive partner, California says.

    Here’s what I have to say to California: It doesn’t come any less reliable, trustworthy or constructive than you are.

    PS California dropped the suit because it has zero chance of winning it.

    1. California is the biggest “donor state” in the country — providing around $83 billion more to the federal government than it receives from the federal government — nearly three times as much as the next biggest “donor state.”

    2. More so that the government is unlikely to actually do anything because they are currently completely lawless.
      But again how do you even post on this site if you don’t support rail?

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