RELATED: FRA cancels $928M California high-speed rail funding
California sues to prevent withholding of high-speed rail funds
Filed in federal court in San Francisco, the suit claims the U.S. DOT lacks authority to withhold the $929 million it was due.

Brian Turner

Brian Turner
California and the California High-Speed Rail Authority (CHSRA) filed a suit to prevent the Trump Administration from canceling a nearly $1 billion federal grant awarded in 2010 for the project.
The lawsuit, which was filed in federal court in San Francisco, claims the U.S. Transportation Department lacks authority to withhold the $929 million it was due, and is seeking an injunction to keep the grant intact.
The state also plans to petition for an immediate temporary restraining order to prevent the department's Federal Railroad Administration (FRA) from redirecting the money to other projects.
Late last week, it was announced that the FRA terminated its Cooperative Agreement with the CHSRA by de-obligating more than $928 million for the project.
“FRA finds that CHSRA has repeatedly failed to comply with the terms of the FY10 Agreement and has failed to make reasonable progress on the Project,” the agency said in a statement. “Additionally, California has abandoned its original vision of a high-speed passenger rail service connecting San Francisco and Los Angeles, which was essential to its applications for FRA grant funding.”
The FRA added it continues to consider all options regarding the return of $2.5 billion in American Recovery and Reinvestment Act funds awarded to CHSRA.
In a statement, California Gov. Gavin Newsom called the Trump Administration’s final decision an illegal and direct assault on California and the thousands of workers building the project.
More Rail

FTA Ends Direct Oversight of MBTA Safety Actions
The federal agency closed its remaining special directive to the Massachusetts Department of Public Utilities following a safety review that began in 2022.
Read More →
Amtrak, CN Reach Agreements to Strengthen Passenger Rail Service, Safety
The agreement resolves a more than decade-long proceeding before the Surface Transportation Board concerning the terms and conditions for Amtrak services, such as the City of New Orleans, Illini/Saluki, and Wolverine.
Read More →
New York MTA Advances Final Contract for Second Avenue Subway Expansion
Contract Four is the largest in the Second Avenue Subway Phase 2 project and includes construction of station infrastructure, tracks, and signals for the subway expansion, MTA officials said. Work on Contract Four will begin in 2027.
Read More →
San Diego MTS Breaks Monthly Trolley Ridership Record
Agency officials said July’s ridership indicates MTS’s continued recovery from the pandemic.
Read More →
Report Examines NJ TRANSIT Reliability, Funding Challenges
The Garden State Initiative analysis examines the roles of Amtrak infrastructure, fleet management, and agency operations while recommending a more performance-based approach to improving reliability.
Read More →
Stadler, CapMetro Sign Long-Term Rail Fleet Support Agreement
Beginning in 2027, Stadler will provide on-site technical expertise, spare parts support, training, and obsolescence management to help extend the reliability and longevity of CapMetro’s GTW fleet.
Read More →
Biz Briefs: Alstom Lands Canadian Contract, LYT to Supply California TSP, and More
In METRO's latest installment, we take a look at recent news from Complete Coach Works, Beep, FlixBus, and more partnerships making headlines across the transportation sector.
Read More →
CATS Gold Line Marks 5 Years of Service, 2.8M Passenger Trips
With a six-mile expansion planned, the Charlotte streetcar is positioned to connect more neighborhoods and major transit hubs across the region.
Read More →
Why Simulating Pedestrian Movement Has Become Essential for Modern Rail Stations
Pedestrian microsimulation is helping rail planners identify bottlenecks, test station designs, and prepare complex transit hubs for growing passenger volumes.
Read More →
Amtrak Begins Major Construction at New York’s Sunnyside Yard
The new maintenance facility will support Amtrak’s Airo trainsets while improving maintenance efficiency and turnaround times in New York.
Read More →