California sued the Trump administration on July 17 over its decision to revoke $4 billion in federal grants for the state’s high-speed rail project, calling the move politically motivated and illegal.
Gov. Gavin Newsom announced the lawsuit in a press release, accusing the administration of using the federal grant termination as retribution against California. The state claims the Federal Railroad Administration (FRA) ended two grant agreements without cause, despite the project meeting its obligations under federal oversight.