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Yes, the statement is true. In late December 2025 (specifically around December 23–26), California voluntarily dismissed its lawsuit against the Trump administration challenging the cancellation of approximately $4 billion in federal grants for the state’s high-speed rail project. • The lawsuit had been filed in July 2025 after the Federal Railroad Administration (under Transportation Secretary Sean Duffy) terminated the funding, citing delays, cost overruns, and non-compliance. • California officials, including Gov. Gavin Newsom, initially called the funding cut “petty political retribution.” • The state dropped the suit, stating the federal government under President Trump was “not a reliable, constructive, or trustworthy partner,” and announced plans to proceed with private investors instead. This development was widely reported across outlets, including Reuters, The New York Times, Politico, AP News, PBS, Sacramento Bee, Fox Business, and Breitbart, with some framing it as a win for the Trump administration in avoiding further federal spending on the long-criticized project (often called a “boondoggle” or “train to nowhere”). The project continues with state funding and efforts to attract private partners by summer 2026.