POLITICS

California drops lawsuit, moves forward without federal funds

PUBLISHED Dec 26, 2025, 4:07 PM ET

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California drops lawsuit, moves forward without federal funds

Media Bias Meter

Sources: 6

Center 83%

Right 17%

Sources: 6

Washington, California officials dropped a lawsuit challenging the Trump administration's decision to cancel more than $4 billion in federal grants for the state's long-delayed high-speed rail project. The California High-Speed Rail Authority filed suit in July and this week officially said it will proceed without federal funds, noting only 18% of program expenditures came from federal sources. A judge rejected a bid to dismiss the case earlier this month; the authority said it will pursue other funding after project costs grew past $100 billion and missed numerous deadlines and faced federal review. Based on 6 articles reviewed and supporting research.

By Najma A. | JQJO News

Timeline of Events

June 2020: FRA releases report citing missed deadlines and budget shortfalls.
July 2020: U.S. Transportation Department cancels more than $4 billion in grants.
July 2020: California High-Speed Rail Authority files suit challenging the cancellation.
Early December 2020: Judge denies motion to dismiss the lawsuit.
Dec. 26, 2020: California drops the lawsuit and plans to proceed without federal funding.

Media Bias

Articles Published:: 6
Right Leaning:: 1
Left Leaning:: 0
Neutral:: 5
Distribution:: Left 0%, Center 83%, Right 17%

Who Benefited

The California High-Speed Rail Authority may benefit by reallocating legal and administrative resources toward securing alternative funding and advancing remaining work without relying on federal grants.

Who Impacted

Riders, Central Valley communities and contractors suffered disruption and uncertainty after the withdrawal of $4 billion in federal support and prolonged project delays.