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California drops suit against Trump’s high-speed rail funding revocation

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California drops suit against Trump’s high-speed rail funding revocation


  • California High-Speed Rail Authority cites lack of federal trustworthiness
  • State plans to proceed without federal funding, seeks private investors by 2026
  • Project costs rise to $89-$128 billion, completion expected by 2033
WASHINGTON, Dec 26 (Reuters) – California has dropped a lawsuit challenging the decision by the administration of President Donald Trump to cancel more than $4 billion in federal grants for the state’s high-speed rail project, the state said late on Friday.

The California High-Speed Rail Authority, which filed the suit in July, said the decision to abandon it on Tuesday reflected the state’s “assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California.”

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The agency said it plans to move forward without federal funding, adding that only 18% of program expenditures for the long-delayed project have come from federal funds. A judge this month rejected a bid to dismiss the lawsuit.

The U.S. Transportation Department and White House did not immediately respond to requests for comment.

LATEST HEADACHE FOR PROJECT PLAGUED BY DELAY, COST OVERRUNS

Governor Gavin Newsom, a Democrat, said in July that termination of the grants by the administration of Republican President Donald Trump amounted to “petty, political retribution, motivated by President Trump’s personal animus toward California and the high-speed rail project, not the facts on the ground.”

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The funding cuts are the latest hurdle in the 16-year effort to link Los Angeles and San Francisco by a three-hour train ride, a project that would deliver the fastest passenger rail service in the United States.

Originally planned for completion by 2020 at a cost of $33 billion, the project is now forecast to cost between $89 billion and $128 billion, with service now expected to start by 2033.

The rail system, whose first bond issue was approved by California voters in 2008, has built more than 50 major railway structures, including bridges, overpasses, undercrossings and viaducts, and completed nearly 80 miles (130 km) of guideway for the project.

The Transportation Department in August canceled another $175 million for four projects that are part of the high-speed rail program, following the cancellation of $4 billion in federal grants.

The California agency said this week it was beginning a process to attract private investors and developers by summer 2026. The agency said on Friday the loss of federal funding will not derail the project and construction, adding it was making progress.

“Rather than continuing to spend time and money challenging the termination, the state is moving forward without them,” the agency said, noting legislation signed in September secures $1 billion for the program annually through 2045.

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The Federal Railroad Administration issued a 315-page report in June finding the project was plagued by missed deadlines, budget shortfalls and questionable ridership projections.

During his first term, Trump revoked $929 million in federal grants, a move challenged by the state, leading to a settlement in 2021 under Democratic President Joe Biden restoring the full amount.

Reporting by David Shepardson in Washington

Our Standards: The Thomson Reuters Trust Principles., opens new tab



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Tory Lanez Sues California Prison System for $100 Million Over Stabbing

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Tory Lanez Sues California Prison System for 0 Million Over Stabbing


Rapper was stabbed 16 times by fellow inmate in May 2025 while 10-year sentence in Megan Thee Stallion shooting case

Tory Lanez has filed a $100 million lawsuit against the California Department of Corrections stemming from a May 2025 incident where the rapper was stabbed in prison.

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Lanez — born Daystar Peterson and currently serving a 10-year sentence after being found guilty in the Megan Thee Stallion shooting case — also sued the warden and guards at the California Correctional Institute in Tehachapi, where the rapper was stabbed 16 times in an “unprovoked life-threatening attack” by another inmate, the lawsuit states. 

Peterson was hospitalized following the May 2025 incident, suffering a collapsed lung among stab wounds to his back, torso, and head.

According to the Associated Press, the lawsuit criticized the Department of Corrections for housing Peterson with fellow inmate and alleged attacker Santino Casio, who was serving a life sentence for second-degree murder. “The choice to house Casio with Peterson was known or should have been a known danger,” the lawsuit said, adding that Tory Lanez’ “high-profile celebrity status” made him a target.

The lawsuit also said that prison guards were slow to respond to the shanking, and didn’t employ flash grenades or other measures to halt Casio’s attack.; Casio was not charged for stabbing Peterson, the Associated Press notes.

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Lanez, who following his hospitalization was transferred to San Luis Obispo County’s California Men’s Colony, also alleges in the lawsuit that he never received his possessions from the California Correctional Institute in Tehachapi, including songbooks filled with lyrics to his unreleased music.

Lanez is serving a 10-year prison sentence for shooting Megan Thee Stallion in the foot during a confrontation in the summer of 2020. He was eventually convicted on several firearms charges, including assault with a firearm, in December 2022. In November 2025, his appeal was denied by a three-judge panel, and the 10-year sentence was upheld.



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California DOJ cracks down on hospice fraud. Takes shot at Trump Administration

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California DOJ cracks down on hospice fraud. Takes shot at Trump Administration


From one crackdown on hospice fraud to another.

A few weeks ago, the FBI arrested multiple people in Southern California that were accused of defrauding the government for millions of dollars.

In a more recent announcement last Thursday, California’s State Attorney General Rob Bonta held a press conference to announce a fraud bust of their own.

“Operation Skip Trace uncovered and ended a hospice fraud scheme that defrauded Medi-Cal of $267 million,” Bonta said. “So just to be clear, a quarter billion dollars over funds that are paid for by California taxpayers, funds that are meant to provide care to Californians in need. It is unacceptable. It is illegal and we will not stand for it.”

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The operation saw a total of 21 suspects charged as a result and dismantled a major hospice fraud scheme, with two handguns and over $750 thousand in cash seized as well.

According to the state’s attorney general, this is just one of the many cases over the years the state has cracked down on.

“This is just the latest example of the California DOJ’s longstanding ongoing and successful efforts to combat hospice and medical fraud,” Bonta said. “We have been doing this work for years. We’ve been doing it successfully before certain people in this country decided to think about it for the first time. We will continue to do this work. Heads down, sleeves rolled up, important investigative work, prosecutorial work.”

He added to that by taking a shot at the Trump Administration’s latest fraud operations.

“While healthcare fraud might be President Trump’s shiny new political talking point, the California DOJ has been going after healthcare fraud since 1979,” Bonta said. “For decades, Trump is late to the party. Protecting taxpayer dollars and protecting programs sick and vulnerable Californians rely on have been our priority for nearly five decades.”

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Governor Gavin Newsom also spoke out about this latest crackdown while taking a shot of his own at President Trump.

In a post to “X” the Governor’s Press Office wrote in part quote…

“California has been cracking down on hospice fraud long before Trump gutted oversight and pardoned the architect of the biggest health care fraud scheme in U.S. history.”

State Republicans have responded to this latest announcement from Attorney General Bonta, calling for a special session to demand accountability from the Governor on widespread fraud.



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Xavier Becerra surges in poll after Eric Swalwell drops out of California governor’s race

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Xavier Becerra surges in poll after Eric Swalwell drops out of California governor’s race


A new poll shows a major shift in the California governor’s race after former Rep. Eric Swalwell, who was once a frontrunner, dropped out of the election following several allegations of sexual misconduct.

“This definitely throws this race into even more volatility, creates a huge vacuum,” Pomona College politics professor Sara Sadhwani said. 

According to the new numbers, Xavier Becerra, the former state attorney general and Health and Human Services Secretary under President Biden, is surging in popularity. 

In Emerson College’s Inside California Politics poll, Becerra is now polling at 10%, a seven-point jump since March.

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Republican Steve Hilton remains in the lead with 17%, followed by Riverside County Sheriff Chad Bianco at 14%.

Among Democrats, billionaire Tom Steyer leads the pack with 14%, followed by Becerra and former Rep. Katie Porter at 10% each. San Jose Mayor Matt Mahan sits at 5%.

The poll showed that 23% of voters remain undecided.

“Xavier Becerra should be the happiest of them all because he’s the biggest move in this survey,” said Zev Yaroslavsky, director at UCLA’s Luskin School of Public Affairs.

Emerson College conducted the poll right after Swalwell dropped out of the race and President Trump endorsed Hilton.

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“I believe over time, because Trump has endorsed Hilton for the governorship, that Hilton will continue to edge up and Bianco by definition will have to go down,” Yaroslavsky said. 

Last weekend, the California GOP held its convention, and, similar to the Democrats, the party did not make an endorsement. However, Bianco received the most votes from the GOP delegates.

“We’re extremely happy with how it came out,” Bianco said. “There was a lot of effort put in by my opponent. Hundreds of thousands of dollars to try and win this election.

With the large number of undecided voters, Yaroslavky believes that the race is still in the air. 

“It’s still early,” Yaroslavsky said. “It’s a little less than seven weeks before the election. The ballots go out at the beginning of next month. People, at least 30%, still haven’t made up their mind.”

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In the state’s primary system, only the top two vote-getters in the June primary will advance to the November general election.   



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