California sues over billions lost in high-speed rail funds as Newsom battles Trump administration

California Gov. Gavin Newsom announced a lawsuit against the Trump administration following the cancellation of more than $4 billion in federal funds for the state’s high-speed rail project.

“Trump’s termination of federal grants for California high-speed rail reeks of politics. It’s yet another political stunt to punish California,” Newsom stated in a news release.

“In reality, this is just a heartless attack on the Central Valley that will put real jobs and livelihoods on the line. We’re suing to stop Trump from derailing America’s only high-speed rail actively under construction,” the governor continued.

The lawsuit alleges the termination was driven by “petty, political retribution” rather than objective concerns, targeting California due to President Donald Trump’s hostility toward the state.

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While the lawsuit characterizes the decision as “petty, political retribution,” Transportation Secretary Sean Duffy justified the termination of $4 billion in unspent federal funding by the Federal Railroad Administration (FRA), citing 16 years of failure, no completed high-speed track, and escalating costs.

Duffy declared the project, dubbed the “train to nowhere,” a mismanaged and over-budget “boondoggle.”

“This is California’s fault. Governor Newsom and the complicit Democrats have enabled this waste for years. Federal dollars are not a blank check – they come with a promise to deliver results,” Duffy said in a statement. 

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The announcement followed months of scrutiny after a comprehensive compliance review, plus failed attempts by the California High-Speed Rail Authority (CHSRA) to address serious project deficiencies. 

The 300-page report, released back in June, examined the project and found delays, missed deadlines, mismanagement, waste, skyrocketing costs, budget shortfalls and over-representation of projected ridership. 

Other key findings revealed that the project faced ongoing — and likely increasing — contractor cost overruns due to delays and that the CHSRA failed to finalize contracts for its high-speed trainsets on time.

The review found that zero miles of high-speed track have been laid since ground was broken 10 years ago, and the cost continues to balloon.

Trump, echoing Duffy’s sentiment, also referred to the project as a “boondoggle.” 

“To the Law abiding, Tax paying, Hardworking Citizens of the United States of America, I am thrilled to announce that I have officially freed you from funding California’s disastrously overpriced, “HIGH SPEED TRAIN TO NOWHERE,” Trump wrote in a post on his social media platform, Truth Social. 

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“This boondoggle, led by the incompetent Governor of California, Gavin Newscum, has cost Taxpayers Hundreds of Billions of Dollars, and we have received NOTHING in return except Cost Overruns. The Railroad we were promised still does not exist, and never will,” Trump continued.

“This project was Severely Overpriced, Overregulated, and NEVER DELIVERED. Thanks to Transportation Secretary Sean Duffy, not a SINGLE penny in Federal Dollars will go towards this Newscum SCAM ever again. This was an ill-conceived and unnecessary project, and a total waste of Taxpayer money — But no more!”

Newsom pushed back on Trump’s criticism, arguing that his administration illegally terminated federal grant agreements funding the high-speed rail. 

Newsom contrasted California’s progress with other states, stating that the Golden State’s project was well ahead of others. 

“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,” Newsom wrote. 

“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,” he continued. 

In addition to canceling $4 billion in unspent federal funds to CHSRA, Duffy directed FRA to review other obligated and unobligated grants related to the CHSRA project.

Fox News Digital’s Michael Dorgan contributed to this report.