California Drops Lawsuit Against Trump Administration Over $4 Billion High-Speed Rail Funding Cut

California has decided to withdraw the lawsuit it filed against the Donald Trump administration over the withdrawal of $4 billion in federal funding for the state’s high-speed rail project.

The lawsuit was dropped on Friday by the California High-Speed Rail Authority, which had previously contested the U.S. Transportation Department’s decision to cut funding for the project.

The Trump administration had justified the funding cut by claiming that the authority lacked a viable plan to complete a significant portion of the project in California’s Central Valley.

In order to finish the project, which is expected to cost $100 billion, the state has now chosen to look for alternative funding sources.

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The move comes after the Trump administration’s reallocation of $2.4 billion in September from California’s high-speed rail project to a $5 billion nationwide program aimed at improving passenger rail services.

Despite the funding challenges, the California High-Speed Rail Authority remains optimistic about the project’s future, citing the opportunity to pursue global best practices without federal involvement.

Trump has had a tense relationship with California over the years, highlighted by political battles with Governor Gavin Newsom, legal disputes over immigration and environmental regulations, and various federal interventions in the state.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.