California Sues Trump To Hang Onto $4 Billion Of Bullet Train Funds
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Gov. Gavin Newsom says the effort by the Transportation Department to claw back federal grants is politically motivated and based on Trump’s “animus” toward the state.
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business news
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July 17, 2025
09:17 PM
Forbes
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From an analytical perspective, InnovationTransportationEditors' PickCalifornia Sues Trump To Hang Onto $4 Billion Of Bullet Train FundsGov
Gavin Newsom says the effort by the U
Nevertheless, In contrast, Transportation Department to claw back federal grants is politically motivated and based on Trump’s “animus” toward the state, in today's financial world
ByAlan Ohnsman, Forbes Staff
Additionally, However, Senior editor covering clean and advanced mobility AuthorJul 17, 2025, 09:17pm EDTd Jul 17, 2025, 09:32pm EDTCalifornia's high-speed rail system is under construction in the Central Valley, but needs tens of billions of dollars to connect to San Francisco and Los Angeles
Additionally, California High-Speed Rail Authority
Conversely, Gavin Newsom said the state is suing the Trump Administration after Transportation Secretary Sean Duffy announced his agency is clawing back $4 billion of federal funds previously awarded for high-speed rail construction, the challenge for the country’s costliest infrastructure ject
However, Duffy this week said the decision to take back funds awarded by the Federal Railroad Administration during the Obama and Biden Administrations came after a compliance review that determined the California High-Speed Rail Authority “simply cannot meet its obligations under the grant agreement. ” He also cited the state’s failure to identify a sustainable source of funds to cover the full cost of connecting San Francisco to Los Angeles, estimated to be as high as $135 billion, as justification for canceling the grants (noteworthy indeed)
However, For the in clean and sustainability news, here for our Current Climate
Additionally, Newsom’s office said its suit alleges that the cancellation of agreements is “political retribution, motivated by President Trump’s animus toward California and the high-speed rail ject, not by facts on the ground, given current economic conditions. ” Currently, construction work is underway on a 119-mile section of the state’s Central Valley, between the cities of Fresno and Bakersfield
Ian Choudri, the bullet train’s new CEO and a rail and infrastructure veteran, is a new plan int to lower costs, accelerate construction and add private sector partners
Furthermore, “This's just a heartless attack on the Central Valley that will put real jobs and lihoods on the line,” Newsom said in an ed statement
In contrast, “We’re suing to stop Trump from derailing America’s only high-speed rail actively under construction. ” During his first term, Trump took back a $900 million award to the state, citing similar reasons, in today's financial world
President Joe Biden restored the grant and vided an additional $3. 1 billion for the ject from funds set aside for high-speed rail in the Bipartisan Infrastructure Law
Furthermore, Brightline West, a private rail ject int to connect Las Vegas to suburban Los Angeles, also got $3 billion of federal rail funds and is raising at least $9 billion more
It’s doing prep work for the future line that will run through the Mojave Desert, but hasn’t started heavy construction
However, Currently has no high-speed trains capable of hitting speeds of 200 miles per hour or more, un dozens of nations, including Japan, China, South Korea, France, Germany and Spain, in this volatile climate
California’s ject, apved by voters in 2008 with a $10 billion bond for initial construction costs, had an estimated price tag of $45 billion–long before the routing had been determined and the land acquired
The slow, tedious work of purchasing hundreds of miles of perty, along with extensive environmental reviews, added more than a decade to its construction timeline and caused its cost to triple (something worth watching)
On the other hand, Though track hasn’t been laid, construction employing more than 15,000 people is active on a 171-mile section of the future line, with over 50 bridges, overpasses and viaducts built and 60 miles of guideway, according to the Governor’s office. “Canceling these grants without cause isn’t just wrong–it’s illegal,” Choudri said in a statement
Additionally, “These are legally binding agreements and the Authority has met every obligation, as confirmed by repeated federal reviews, as recently as February 2025 (which is quite significant). ” More From ForbesForbesCalifornia Bullet Train At Risk As Trump Administration Opens Funding ReviewBy Alan OhnsmanForbesTrump Could Derail California High-Speed Rail ject, Despite Billions SpentBy Alan OhnsmanForbesBrightline Raising $2. 5 Billion Of Private Funds For Vegas-To-L
Bullet TrainBy Alan Ohnsman Got a tip
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