California has escalated its fight against President Donald Trump’s administration after the federal government rescinded $4 billion in funding earmarked for the state’s ambitious high-speed rail project.
On Thursday, the California High-Speed Rail Authority filed a lawsuit in the U.S. District Court in Los Angeles, seeking to overturn the decision that state officials alleged was an “arbitrary and capricious abuse of authority.”
Newsweek has contacted the rail authority and Governor Gavin Newsom’s office for more information via email.
Why It Matters
The lawsuit could determine the fate of the biggest high-speed rail project in the U.S. Losing federal funds threatens tens of thousands of jobs and could delay or derail the completion of the Central Valley segment. The outcome could also have a knock-on effect on transit infrastructure, particularly as the project’s cost estimate has soared to $128 billion.
What To Know
The California High-Speed Rail Authority, joined by state Attorney General Rob Bonta, filed the lawsuit after the Federal Railroad Administration pulled $4 billion in grants originally designated for construction in the Central Valley.
The complaint said the Trump administration’s decision was “arbitrary and capricious, an abuse of discretion, and contrary to law.” It added that the action could have severe economic implications for the state.
The suit names U.S. Department of Transportation Secretary Sean Duffy and acting Administrator of the Federal Railroad Administration Drew Feeley as defendants.
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Newsom said in a statement shortly before the suit was filed, “California is putting all options on the table to fight this illegal action.”
Approved by state voters in 2008, California’s high-speed rail was originally intended to link San Francisco and Los Angeles by 2020 at a projected cost of $33 billion.
On Wednesday, Trump, who has been threatening to withdraw federal funding since the beginning of his second term, made the decision to withdraw $4 billion, branding the project a “boondoggle” that had been mismanaged by Democratic leaders in California.
What People Are Saying
California Governor Gavin Newsom said in a statement to Newsweek on Wednesday: “Trump wants to hand China the future and abandon the Central Valley. We won’t let him. With projects like the Texas high-speed rail failing to take off, we are miles ahead of others. We’re now in the track-laying phase and building America’s only high-speed rail. California is putting all options on the table to fight this illegal action.”
California High-Speed Rail Authority CEO Ian Choudri told Newsweek on Wednesday: “Canceling these grants without cause isn’t just wrong—it’s illegal. These are legally binding agreements, and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025.
“America’s only high-speed rail project underway is fast approaching the track-laying phase, with 171 miles under active construction and design, 15,500 jobs created, and more than 50 major structures completed. This is no time for Washington to walk away on America’s transportation future.”
What Happens Next
California’s lawsuit is set to proceed in the U.S. District Court, with initial hearings anticipated in the coming months. The California High-Speed Rail Authority plans to submit an updated funding strategy to state lawmakers and is seeking private investment and legislative backing for increased cap-and-trade support.