California will move ahead with its long-delayed high-speed rail project despite losing more than 4 billion US dollars in federal grants, the state announced on Friday, in a development reported by Reuters.

The California High-Speed Rail Authority said it is abandoning its lawsuit challenging the Trump administration’s decision, describing the federal government as “not a reliable, constructive, or trustworthy partner” for the initiative. Only 18 percent of the project’s total expenditures have come from federal sources, the agency added.

Spanning 16 years of planning and construction, the Los Angeles–San Francisco rail link has faced repeated hurdles, including delays, cost overruns, and disputes over ridership forecasts. Originally expected to cost 33 billion US dollars and open by 2020, the project now carries an estimated price tag of 89 billion US dollars to 128 billion US dollars, with service not anticipated until 2033.

Federal oversight has been critical to the controversy. A June report from the Federal Railroad Administration highlighted budget shortfalls and missed deadlines, prompting the U.S. Transportation Department to describe the project as unable to deliver “on time or on budget,” warning that American taxpayers’ money would be better directed to other infrastructure projects.

Despite these challenges, the rail authority highlighted progress on the ground, including the construction of over 50 major structures and nearly 80 miles (130 km) of guideway. The agency said it is now seeking private investors and developers by summer 2026, and state legislation signed in September secures 1 billion US dollars annually for the project through 2045.

Previous federal funding disputes underscore the project’s fraught history. During Trump’s first term, 929 million US dollars in grants was revoked and later restored under President Biden, demonstrating the volatility of federal support.