California's High Speed Rail Authority has been cleared to proceed with a $2 billion plan to electrify Caltrain tracks between San Francisco and San Jose.
The state Department of Finance on Friday approved the expenditure of $600 million in voter-approved bond money. The approval follows the Trump administration's decision to fully fund a $650 million grant for the project.
The peninsula section is the northernmost piece of the $64 billion bullet train that will link San Francisco and Los Angeles.
High-speed rail opponents filed a lawsuit Thursday challenging the electrification project. They argue that state legislation unconstitutionally allows high-speed rail bonds to be spent on Caltrain, violating promises made to voters in 2008.