Judge Dismisses Bid to Toss California High-Speed Rail Lawsuit

A U.S. judge has dismissed the Trump administration’s attempt to discard a California lawsuit over the cancellation of more than $4 billion in federal grants for a high-speed rail project. The lawsuit by the California High-Speed Rail Authority alleges the cuts were an arbitrary abuse of power.

A United States judge has dismissed an effort by the Trump administration to terminate a lawsuit posed by a California agency. The lawsuit challenges the revocation of more than $4 billion in federal grants intended for California's high-speed rail project, linking Los Angeles and San Francisco.

Sacramento-based U.S. District Judge Dale Drozd turned down the Justice Department's claim that the California High-Speed Rail Authority's suit was filed in an incorrect venue and should have gone to the U.S. Court of Federal Claims. The agency contends the canceled grants represent an "arbitrary and capricious" overreach of authority.

The funding cuts are the newest obstacles for the rail project, which aims to reduce travel time between Los Angeles and San Francisco to three hours. Despite initial plans for completion by 2020 with a budget of $33 billion, the cost has escalated, and full operations are now anticipated to begin in 2033.

(With inputs from agencies.)