California's high-speed train project set to secure billions in financial backing from the state
In the heart of California, plans for a high-speed rail project are moving forward, despite facing challenges and controversy. Here's a roundup of the latest developments:
Gavin Newsom, the Governor of California, has been a supporter of the high-speed rail project. This ambitious undertaking, when completed, is expected to boost economies statewide and foster innovation in transit.
The state budget deal in June 2025 restored $1.1 billion in flexible transit funding from the Greenhouse Gas Reduction Fund. This funding benefits transit operations statewide, including Los Angeles County, a region that requires significant attention to reduce carbon emissions. State Sen. Lola Smallwood-Cuevas and Sen. Henry Stern have emphasised the need for more transit funding in the Los Angeles area, beyond investments for wildfire recovery.
The restored funding, however, did not specify whether it would be allocated to the high-speed rail project. Advocates of the project, such as Eli Lipmen of MoveLA, believe that investments will help improve transit connections in the Los Angeles region, even before a direct high-speed rail connection.
So far, roughly $14 billion has been spent on the high-speed rail project, creating approximately 15,000 jobs in the Central Valley. The project is expected to receive $1 billion a year in funding from the state's cap-and-trade program through 2045. These funds are seen as crucial to completing the current priority, a 171-mile portion from Merced to Bakersfield, by 2033.
The funding is pending a final vote from the Legislature. If approved, construction on the project will likely continue to be limited to the Central Valley, with unclear timelines for when construction would begin elsewhere in the state. In contrast, the Los Angeles area does not face the same state funding hurdles as the Bay Area, where lawmakers are seeking a $750-million transit loan.
The high-speed rail project was originally proposed with a 2020 completion date but is currently over $100 billion over the original $33-billion budget. This has led to significant pushback from Republican lawmakers and some Democrats. The Trump administration recently moved to pull $4 billion in funding for construction in the Central Valley, and the state has sued in response.
Despite these challenges, the project's advocates, including Sen. Smallwood-Cuevas, envision an opportunity to invest in regional public transit while building a high-speed rail program. They believe that the project is crucial to the state's economy and to the nation's innovation in transit.
As the high-speed rail project continues to evolve, it's clear that transit improvements and expansions are necessary in the Los Angeles region, particularly in light of the high public transit use, with L.A. County accounting for 82% of Southern California's bus ridership. The investments aim to expand access to transit in the Los Angeles region, reaching areas such as Orange County, San Bernardino, Riverside, and Ventura County.
In conclusion, the future of California's high-speed rail project is uncertain, but with the support of key lawmakers and the potential for significant funding, it remains a significant part of the state's transit plans. The project's success could have far-reaching implications for California's economy and its role in shaping the future of transit in the United States.
