The funds, ought to the complete Legislature log out on them, could be sufficient to finish the preliminary 171-mile stretch underway within the Central Valley however not sufficient to construct out to inhabitants facilities within the north and south — not to mention full all the San Francisco to Los Angeles rail line.
Even so, California Excessive Velocity Rail Authority CEO Ian Choudri known as it “a historic commitment” of “the largest guaranteed infusion of funding for California’s high-speed rail program to date.”
“This funding agreement resolves all identified funding gaps for the Early Operating Segment in the Central Valley and opens the door for meaningful public-private engagement with the program,” Choudri mentioned in an announcement. “We must also work toward securing the long-term funding — beyond today’s commitment — that can bring high-speed rail to California’s population centers, where ridership and revenue growth will in turn support future expansions.”
The rail authority plans to borrow towards the long run funding assure to finance the remainder of building on the route between Merced and Bakersfield, which is about to be accomplished by 2033. Since 2019, the rail authority has been centered on constructing out that stretch alone, which is now estimated to price a complete of $37 billion. That’s larger than the $33 billion price ticket for the finished San Francisco-Los Angeles line that voters signed off on once they accredited the preliminary $9 billion bond in 2008.
Since he took the helm of the rail authority final yr, Choudri has pushed to construct past the Central Valley as rapidly as attainable, extending the road to inhabitants facilities Gilroy, in Northern California, and Palmdale in Southern California, which join by way of native rail to San Francisco and Los Angeles.
Working within the Central Valley alone, the rail line just isn’t anticipated to be worthwhile, in accordance with a report launched final month by the rail authority. Constructing to Gilroy and Palmdale similtaneously the Central Valley section might generate sufficient earnings to pay again the personal traders that Choudri is concentrating on. However finishing the longer route would require extra funds than the $1 billion dedicated, in addition to the Legislature’s approval to switch the scope of the preliminary working section.
Already, getting simply $1 billion a yr for top velocity rail was a fragile matter in a contentious deal to increase the state’s cap-and-trade program, wherein corporations bid over credit that enable them to emit greenhouse gases. This system’s revenues — which have hovered round $4 billion yearly lately — go to help public transit, wildfire prevention, and housing, along with the excessive velocity rail.
Republicans have criticized the undertaking as a boondoggle whose funding might higher be spent elsewhere. Rep. Kevin Kiley, a Rocklin Republican, touted Congress’ chopping of its federal funding in July.
“The High-Speed Rail Authority is now claiming it’s made ‘substantial progress to deliver high-speed rail in California,’” Kiley mentioned in a July social media publish. “In fact, there has not been an inch of track laid in 17 years.”
Excessive-speed rail proponents like Sen. Dave Cortese, a San Jose Democrat, are encouraging fellow lawmakers to log out on the plan.
“For too long, critics have tried to write the obituary for High-Speed Rail,” Cortese mentioned in an announcement. “But we’ve kept pushing, and now we have a long-term commitment that will create jobs, cut pollution, and revitalize communities up and down the state. The Legislature must act quickly to pass this plan and keep California on track to deliver America’s first true high-speed rail.”
Initially Printed: September 11, 2025 at 4:37 PM PDT
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