California’s high-speed rail project will receive a significant boost with a new agreement providing $1 billion annually through 2045. This funding, sourced from the state’s cap-and-invest program, aims to ensure the project’s completion despite previous financial hurdles. Governor Gavin Newsom and legislative leaders have committed to this funding, which will support the California High-Speed Rail Authority in completing the initial Merced-to-Bakersfield segment by 2033.
The project, initially expected to cost $33 billion, now has estimates exceeding $135 billion. The new funding will cover gaps in the Central Valley portion, allowing the rail authority to pursue private-sector partnerships and begin trainset procurement. According to Newsweek, the cap-and-invest program, which collects fees from polluting industries, will be extended to 2045 to support this initiative.
Construction on the 171-mile stretch between Merced and Bakersfield continues, with significant progress already made. Nearly 70 miles of track bed and over 50 bridges are completed. The California High-Speed Rail Authority CEO Ian Choudri expressed gratitude for the state leaders’ support, highlighting the project’s potential to create jobs and reduce pollution.
However, the project faces criticism and challenges, including the withdrawal of $4 billion in federal grants. Despite this, the rail authority remains optimistic about securing future federal funding and expanding the rail line to connect California’s major population centers. Bond Buyer reports that the funding agreement represents a historic commitment to the high-speed rail program, marking a significant step forward for this transformative infrastructure project.
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