California has pulled the plug on a lawsuit that challenged the Trump administration’s decision to cancel more than $4 billion in federal grants for the state’s long-troubled high-speed rail project, a move that reframes the fight from courtroom combat to going it alone.

The California High-Speed Rail Authority, which filed the suit in July, said late Friday that it would abandon the case after concluding the federal government is “not a reliable, constructive, or trustworthy partner” in advancing high-speed rail in the state. The agency said it will proceed without federal funding, noting that only about 18% of total program spending has come from federal sources. Earlier this month, a judge rejected an effort to dismiss the lawsuit.

Federal Findings Fuel the Break

The decision comes against the backdrop of a blistering 315-page Federal Railroad Administration report issued in June, which found the project hampered by missed deadlines, budget gaps and questionable ridership forecasts.

The U.S. Transportation Department said Saturday that the FRA investigation showed that after more than 15 years, California’s rail authority “would be unable to deliver on their high speed rail promises on time or on budget.”

“American tax dollars will be spared from being wasted on this train to nowhere,” the department said, adding that funds would instead support projects aimed at improving the lives of rail passengers, drivers and pedestrians.

Delays and Cost Overruns Shadow the Project

California Gov. Gavin Newsom, a Democrat, blasted the grant termination in July, calling it “petty, political retribution” driven by Republican President Donald Trump’s personal animus toward California and the rail project rather than the facts.

The funding cuts mark another obstacle in a 16-year push to link Los Angeles and San Francisco by a three-hour train ride — a vision billed as the fastest passenger rail service in the United States.

Originally slated for completion by 2020 at a cost of $33 billion, the project is now projected to cost between $89 billion and $128 billion, with service not expected until 2033. Voters approved the first bond issue in 2008. Since then, the project has built more than 50 major structures — bridges, overpasses, undercrossings and viaducts — and completed nearly 80 miles (130 kilometers) of guideway.

More Federal Cuts, New Funding Paths

In August, the Transportation Department canceled an additional $175 million tied to four high-speed rail projects, following the earlier termination of the $4 billion in grants.

State officials say the latest setback will not derail construction. The rail authority announced this week it is launching a process to court private investors and developers by summer 2026. On Friday, the agency said it continues to make progress despite the loss of federal dollars.

“Rather than continuing to spend time and money challenging the termination, the state is moving forward without them,” the authority said, pointing to legislation signed in September that guarantees $1 billion a year for the program through 2045.

A Familiar Federal Fight

During Trump’s first term, his administration revoked $929 million in federal grants — a move California challenged in court. That dispute ended with a 2021 settlement under Democratic President Joe Biden, which restored the full amount.

Now, with the California Trump suit dropping, the state appears to be closing one legal chapter while betting that its rail ambitions can survive without Washington’s backing.