California Drops Lawsuit on High-Speed Rail Funding Setback

California has decided to withdraw a lawsuit against the federal government over the cancellation of more than $4 billion in grants for its high-speed rail project. Despite setbacks, the state plans to continue the project without federal support, aiming to attract private investment and ensure funding through 2045.

California has officially withdrawn its lawsuit challenging the Trump administration's cancellation of over $4 billion in federal grants that were meant for the state's ambitious high-speed rail project. Despite this financial hiccup, state officials assert their commitment to moving forward with the project, seeking private sector involvement to bridge funding gaps.

Governor Gavin Newsom labeled the funding cuts as politically motivated retribution. Originally estimated to cost $33 billion, the project is now expected to exceed $89 billion, with completion rescheduled to 2033. The initiative aims to connect Los Angeles and San Francisco via a three-hour train ride, becoming the fastest passenger rail service in the U.S.

The California High-Speed Rail Authority emphasized that the loss of federal funding will not derail the project and plans to attract private investors by 2026. State legislation ensures an annual $1 billion through 2045, reinforcing the project's sustainability. Meanwhile, the Federal Railroad Administration's critical report highlights ongoing challenges.

(With inputs from agencies.)