High-Speed Rail Battle: California's Legal Victory Against Federal Grant Cuts

A U.S. judge dismissed the Justice Department's attempt to throw out California's lawsuit against the Trump administration's decision to cancel over $4 billion in federal grants for a high-speed rail project. The judge dismissed the government's argument that the case should be in the U.S. Court of Federal Claims.

WASHINGTON, Dec 10 - In a significant legal development, a U.S. judge on Wednesday dismissed the Justice Department's attempt to eliminate a lawsuit filed by California. The lawsuit challenges the Trump administration's decision to revoke more than $4 billion in federal grants allocated for the state's ambitious high-speed rail project.

The lawsuit, initiated by the California High Speed Rail Authority in July, condemned the grant cancellation as an "arbitrary and capricious" misuse of power. The authority contends that the funds are critical for advancing the transportation infrastructure of the region.

U.S. District Judge Dale Drozd, presiding over the matter, rejected the federal government's assertion that the lawsuit was wrongly filed and belongs in the U.S. Court of Federal Claims, maintaining the case within the current jurisdiction.