California has withdrawn its federal lawsuit challenging the loss of $4 billion in grant funding for the state’s high-speed rail project, a project federal officials once called a “boondoggle,” but left the door open to revive the case.
In a notice filed Dec. 23 in the U.S. District Court for the Eastern District of California, the Attorney General’s Office voluntarily dismissed the action without prejudice. The move ends, at least for now, its bid to overturn the Federal Railroad Administration’s July decision to terminate the grants.
The money had been earmarked for California’s all-electric rail line, envisioned to move passengers at more than 200 mph between key population centers. However, federal officials argued the project suffered from persistent problems and lacked assurance of timely completion, prompting the funding cutoff.
State rail leaders countered that the program remains viable and are pursuing private investment and asset-commercialization strategies to accelerate delivery.
The dismissal does not resolve the underlying dispute over federal support for the corridor, nor does it affect California’s ability to refile. Project backers must now navigate construction, schedule, and financing without federal tax dollars while weighing whether to proceed with renewed litigation or other remedies.
