OAKLAND, Calif. – In a significant turn of events, California has opted to drop its lawsuit against the Trump administration, which was initially filed in response to the federal government’s decision to withdraw $4 billion earmarked for the state’s ambitious high-speed rail project.

Back in July, the U.S. Transportation Department decided to cut funding for the high-speed rail line, which aims to link San Francisco with Los Angeles. The Trump administration justified its action by claiming that the California High-Speed Rail Authority lacked “a viable plan” to complete a substantial portion of the rail in the agriculturally rich Central Valley.

In a swift response, the rail authority filed a lawsuit, with Democratic Governor Gavin Newsom criticizing the federal government’s move as “a political stunt to punish California.” Despite the legal action, the state has now decided to shift its focus to alternative sources of funding in its quest to bring the project, projected to cost over $100 billion, to fruition.

An authority spokesperson issued a statement this week, emphasizing that this decision is based on the state’s evaluation that the federal government does not currently serve as a “reliable, constructive, or trustworthy partner” in advancing California’s high-speed rail ambitions.

“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.

The Transportation Department did not respond to a request for comment. President Donald Trump and Transportation Secretary Sean Duffy have both previously criticized the project as a “train to nowhere.”

“The Railroad we were promised still does not exist, and never will,” Trump said on his social media platform Truth Social in July. “This project was Severely Overpriced, Overregulated, and NEVER DELIVERED.”

The authority’s decision to drop the lawsuit comes as the group seeks private investors to support the bullet train. The project recently secured $1 billion in annual funding from the state’s cap-and-trade program through 2045.

The program sets a declining limit on total planet-warming emissions in the state from major polluters. Companies must reduce their emissions, buy allowances from the state or other businesses, or fund projects aimed at offsetting their emissions. Money the state receives from the sales funds climate-change mitigation, affordable housing and transportation projects, as well as utility bill credits for Californians.

The rail authority said its shift in focus away from federal funding offers “a new opportunity.”

“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,” a spokesperson said in a statement.