The California High Speed Rail Authority is suing the Trump administration over cancellation of $4 billion in federal funding for the $36.3 billion high rail project connecting two cities in the state’s sparsely-populated Central Valley.
“This is just a heartless attack on the Central Valley that will put real jobs and livelihoods on the line,” said California Gov. Gavin Newsom in a statement. “We’re suing to stop Trump from derailing America’s only high-speed rail actively under construction.”
Newsom’s office claimed the lawsuit comes as “the project enters the track laying phase,” but as recently as June federal authorities noted that “CHSRA has not laid any track.”
CHSRA maintains that it is meeting its obligations, but federal authorities say the state missed a key rolling stock procurement deadlines, and appears on track to fail to meet its obligation to have an early operating segment by 2033.
“Canceling these grants without cause isn’t just wrong, it’s illegal,” said CHRA in a statement. “These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews.”
Federal authorities estimate California has spent $15 billion on the government-run high speed rail project, including $2.5 billion in spent federal funds. The project was first approved by voters in 2008 with a $10 billion bond and a 2020 completion date for a high speed rail line connecting Los Angeles to San Francisco.
While the state says it will complete the 171-mile, $36.3 billion early operating segment connecting Bakersfield and Merced by 2033, the Trump administration cited the program’s continued delays, ongoing $7 billion budget shortfall — from before the withholding of $4 billion in federal funds — and lack of “credible plan to secure additional funds” in its funding cancellation.
