California this week dropped a lawsuit officials filed against the Trump administration over the federal government’s withdrawing of $4 billion for the state’s long-delayed high-speed rail project.
The U.S. Transportation Department slashed funds for the bullet train aimed at connecting San Francisco to Los Angeles in July. The Trump administration has said the California High-Speed Rail Authority had “ no viable plan ” to complete a large segment of the project in the farm-rich Central Valley.
The authority quickly filed a lawsuit, with Democratic Gov. Gavin Newsom calling the federal government’s decision “a political stunt to punish California.”
The authority said this week that it would focus on other funding sources to complete the project, which is estimated to cost more than $100 billion.
“This action reflects the State’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California,” an authority spokesperson said in a statement.
The Transportation Department did not respond to a request for comment. President Donald Trump and Transportation Secretary Sean Duffy have both previously criticized the project as a “train to nowhere.”
“The Railroad we were promised still does not exist, and never will,” Trump said on his social media platform Truth Social in July. “This project was Severely Overpriced, Overregulated, and NEVER DELIVERED.”
The authority’s decision to drop the lawsuit comes as the group seeks private investors to support the bullet train. The project recently secured $1 billion in annual funding from the state’s cap-and-trade program through 2045.
The program sets a declining limit on total planet-warming emissions in the state from major polluters. Companies must reduce their emissions, buy allowances from the state or other businesses, or fund projects aimed at offsetting their emissions. Money the state receives from the sales funds climate-change mitigation, affordable housing and transportation projects, as well as utility bill credits for Californians.
The rail authority said its shift in focus away from federal funding offers “a new opportunity.”
“Moving forward without the Trump administration’s involvement allows the Authority to pursue proven global best practices used successfully by modern high-speed rail systems around the world,” a spokesperson said in a statement.
This story was originally featured on Fortune.com
