Capitol Alert

High-speed rail funding sparks another legal battle between CA and Trump

An artist’s rendering shows the California High Speed Rail station planned for Merced.
An artist’s rendering shows the California High Speed Rail station planned for Merced. California High-Speed Rail Authority

Good morning and welcome to the A.M. Alert!

CALIFORNIA DERAILED

California is taking President Donald Trump’s administration to court over cutting $4 billion in federal grants from the state’s high-speed rail project.

The lawsuit alleges funding was cut for political reasons, not because of factual problems with the project.

“It’s yet another political stunt to punish California,” Gov. Gavin Newsom said in a press release.

The California high-speed rail project, approved by voters in 2008, aims to connect San Francisco and Los Angeles with nearly 800 miles of track around the state. However, U.S. Transportation Secretary Sean Duffy joined Republicans in criticizing the project, calling it a “boondoggle” in an X post.

The lawsuit, filed by the California High Speed Rail Authority and state Attorney General Rob Bonta, is set to proceed in U.S. District Court with initial hearings anticipated in the coming months, according to Newsweek.

Before the funding cuts, the rail system completed more than 50 major railway structures with active construction in the Central Valley. The high-speed rail project is a key part of Newsom’s effort to improve California’s infrastructure and create jobs across the state.

SMALL HOUSING SOLUTION?

Via Rebecca-Ann Jattan...

A new bipartisan bill aims to tackle the national housing crisis by creating more affordable housing options through accessory dwelling units.

Reps. Sam Liccardo, D-San Jose, and Andrew Garbarino, R-N.Y., introduced the Supporting Upgraded Property Projects and Lending for Yards Act in Congress on Friday.

Their bipartisan bill will expand financing access for ADUs, which include backyard cottages, granny flats, in-law suites and similar units, also called tiny homes.

It would allow homeowners to access second loans on their homes through the U.S. Department of Housing and Urban Development, removing a potential barrier to ADU construction through “government-backed, flexible financing options”.

“With access to capital, we can empower homeowners to become home providers for thousands of renters in every metropolitan area,” Liccardo said.

The SUPPLY Act, as presented through HR 4479, is endorsed by the National Association of Home Builders, Mortgage Bankers Association and the California and Nevada Credit Union Leagues.

“As California’s housing crisis evolves, more residents are turning to accessory dwelling units (ADUs) as a practical solution to rising costs and limited housing options,” Scott Simpson, California Credit Union League’s CEO & President, said. “The SUPPLY Act is a meaningful step in creating flexible lending opportunities for ADUs and expanding access to affordable housing.”

QUOTE OF THE DAY

“The Trump Administration’s cruel decision to shut down the 988 Lifeline’s LGBTQ+ youth option will cost lives. One of every twelve callers to the general 988 crisis line is an LGBTQ+ youth. These calls aren’t just statistics. These are real kids, with names, with families, and with dreams.”

— Rep. Doris Matsui, D-Sacramento in a press release condemning shutdown of LGBTQ+ crisis line

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Amelia Wu
The Sacramento Bee
Amelia Wu is a reporting intern for The Sacramento Bee’s Capitol Bureau covering state workers. She recently graduated from Cal Poly SLO, where she served as editor-in-chief of the student paper. She previously reported for the Dallas Morning News, CalMatters and the Daily Dot.
Rebecca-Ann Jattan
The Sacramento Bee
Rebecca-Ann Jattan was a 2025 summer reporting intern for The Sacramento Bee’s Capitol Bureau.
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