(A)Political - December 27th

Good morning everyone,

Washington is still delivering on Christmas break. Let’s dig in!

Gov. Newsom drops his fight with Trump over funding cuts to a high speed rail project. As attacks against Christians in Nigeria heighten, Trump took military action to deter further threats. Zelensky plans to meet with Trump very soon to solidify peace deal for the Russia-Ukraine conflict.

• Newsom Yields Fight With Trump Over Funding Cut

• Trump Delivers ‘Christmas Present’ To Terrorists In Nigeria

• Peace Deal Gets Closer Between Russia-Ukraine As Trump Angles For Final Say

Newsom Yields Fight With Trump Over Funding Cut

_{By: Atlas}

California withdrew its lawsuit against the Trump administration this week, abandoning a five-month legal fight to restore $4 billion in federal funding for the state's troubled high-speed rail project. The California High-Speed Rail Authority filed the suit in July after the U.S. Transportation Department terminated the grants, but officials now say they will look elsewhere for the money.

The decision marks a significant shift in strategy for a project that has been plagued by delays and cost overruns since voters approved it in 2008. What was originally envisioned as a bullet train carrying passengers from San Francisco to Los Angeles in under three hours has been scaled back repeatedly, with the first segment now expected to open in part of the Central Valley in 2033.

"This action reflects the State's assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California," an authority spokesperson said in a statement provided to the Sacramento Bee.

The Transportation Department did not respond to requests for comment on California's withdrawal from the case.

The July funding termination

The Trump administration pulled the plug on federal support in July, with Transportation Secretary Sean Duffy calling the project a "boondoggle" and blaming California, Gov. Gavin Newsom and Democrats for what he described as "a decade of failures."

"Federal dollars are not a blank check – they come with a promise to deliver results," Duffy said at the time. "After over a decade of failures, CHSRA's mismanagement and incompetence has proven it cannot build its train to nowhere on time or on budget."

The administration said the California High-Speed Rail Authority had "no viable plan" to complete a large segment of the project running through the state's agricultural heartland in the Central Valley.

President Donald Trump weighed in on his Truth Social platform that same month: "The Railroad we were promised still does not exist, and never will. This project was Severely Overpriced, Overregulated, and NEVER DELIVERED."

Newsom fired back at the time, calling the funding termination "a political stunt to punish California." The authority sued the U.S. Department of Transportation and the Federal Railroad Administration days later, seeking to have the grants restored.

Why California walked away

The authority explained its reversal by pointing to what it described as an unreliable federal partner. Officials said the Federal Railroad Administration had warned that all work performed by the authority "remains 'at risk' and may not receive funding," regardless of whether it was undertaken as part of cooperative agreements.

A spokesperson told reporters the authority now sees the split from Washington as an opportunity to streamline construction by shedding federal requirements that officials claim have driven up costs and slowed progress without adding value.

"Moving forward without the Trump administration's involvement allows the Authority to pursue proven global best practices used successfully by modern high-speed rail systems around the world," the spokesperson said.

The authority noted that federal funds have accounted for only 18 percent of total program expenditures to date, suggesting the project's reliance on Washington has been more limited than commonly assumed.

New funding sources

California is betting it can complete the project without federal help by tapping state resources and attracting private investment.

The rail authority recently secured $1 billion in annual funding from California's cap-and-trade program, an extension signed by Newsom that will run through 2045. The program requires major polluters to either reduce their planet-warming emissions, purchase allowances from the state or other businesses, or fund offset projects. Revenue from those sales goes toward climate mitigation, affordable housing, transportation and utility bill credits for residents.

On December 19, the authority issued a request for qualifications seeking private partners as part of a broader plan to bring in outside investors by summer 2026. Officials say they want to accelerate construction and explore new revenue opportunities that could help close a funding gap on a project now estimated to cost more than $100 billion.

The pivot comes as the authority faces continued skepticism about whether the bullet train will ever be built. Critics have long questioned the project's financial assumptions and management, while supporters argue it remains essential to California's transportation future and climate goals.

A project defined by setbacks

When California voters approved Proposition 1A in 2008, they were promised a 220-mile-per-hour train that would travel between San Francisco and Los Angeles in two hours and 40 minutes. The initial cost estimate was $33 billion.

Nearly two decades later, the price tag has ballooned past $100 billion and the scope has narrowed dramatically. Construction is currently focused on a 119-mile segment in the Central Valley between Merced and Bakersfield, with completion of that initial operating line targeted for 2033.

The project has burned through billions of dollars acquiring land, relocating utilities and building viaducts and other structures in the Central Valley. But no tracks have been laid, and the authority has yet to purchase any trains.

Federal funding has been a flashpoint throughout. The Obama administration awarded California $3.5 billion in stimulus funds for high-speed rail in 2010, and subsequent grants brought the federal commitment to roughly $4 billion. The Trump administration's first term saw an attempt to claw back some of that money, though a court blocked the move.

This time, California chose not to fight.

The authority's statement framing the withdrawal as a strategic decision rather than a legal defeat suggests officials concluded they were unlikely to prevail or that the time and resources required for litigation were better spent elsewhere. The state now faces the challenge of proving it can deliver a project that has so far produced mostly concrete in the farmland of the San Joaquin Valley and promises of trains still years away.

Subscribe to (A)Political to read the rest.