Governor Gavin Newsom signed Assembly Bill 377 on Wednesday, mandating the California High-Speed Rail Authority to devise a comprehensive funding plan for the high-speed rail project segment from Merced to Bakersfield. The bill requires the Authority to update cost estimates, risk assessments, and service initiation options in its 2026 business plan. This legislation comes as the project faces a $7 billion funding gap and a lawsuit against the Trump administration for withdrawing $4 billion in federal funding.
Governor Newsom emphasized the importance of the high-speed rail project as a critical investment for California’s future, aiming to enhance transportation infrastructure and reduce emissions. The project, initially estimated at $33 billion, now faces costs between $89 billion and $128 billion. Despite these challenges, the Authority projects operational trains by 2030, a decade later than initially planned.
Assemblyman David Tangipa, who authored the bill, highlighted the necessity of a clear financial roadmap to prevent leaving Fresno and the Central Valley with incomplete infrastructure. The bill’s signing comes amid ongoing construction in the Central Valley, where 119 miles are under active construction. Civil work is expected to conclude by December 2026, with track-laying to follow.
The state continues to explore funding solutions, including California’s cap-and-trade program, which currently allocates 25% of its annual revenue to the rail project. The program, however, is set to expire in 2030, adding uncertainty to the project’s funding strategy.
Recent Comments