Overview
- California dismissed its federal lawsuit on Dec. 26 that sought to restore roughly $4 billion cut from the bullet train, signaling it will proceed without Washington’s involvement.
- The Federal Railroad Administration withdrew the grants after a 315-page June review citing missed deadlines, budget shortfalls and questionable ridership projections, and later canceled another $175 million in August.
- The rail authority says federal money has accounted for about 18% of program spending, calling the U.S. government an unreliable partner as it pivots to state-controlled funding streams.
- New financing plans lean on about $1 billion per year from California’s cap-and-trade program through 2045 and a push to bring in private co-developers, with an RFQ issued Dec. 19 targeting a partner by summer 2026.
- Costs have surged far beyond the 2008 vision, with the initial 171-mile Central Valley segment now near $36.8 billion and the full 494-mile system estimated as high as $128 billion; a judge earlier in December rejected a bid to toss the state’s case.