California high-speed rail project secured a major boost Saturday with a new $1 billion annual funding commitment from the state through 2045 — a move that effectively guarantees the completion of its first operating segment in the Central Valley.
The funding, approved by the Legislature and tied to the state’s Cap-and-Invest program, will provide a reliable stream of revenue for the California High-Speed Rail Authority. Officials say it closes a critical gap for the 171-mile Merced-to-Bakersfield section now under construction, expected to be operational by 2032.
“This is a huge win,” said Henry Perea, a rail authority board member from Fresno. “A billion dollars a year up to 2045 absolutely guarantees the fact that we will build what we’ve been working on.”
The program, which generates revenue from companies buying emissions credits, has already provided $7.9 billion to the rail project since 2012 and was extended by lawmakers from its previous 2030 expiration date. High-speed rail now has nearly $40 billion in funding lined up through 2045 — even without the $4 billion pulled by the Trump administration earlier this year, which the state is suing to recover.
The funding pledge also strengthens the project’s case for attracting private investment. The authority reported 31 responses to its recent call for public-private partnership proposals and hopes to leverage the state’s backing to issue bonds.
Originally approved by voters in 2008 with a promise to connect San Francisco and Los Angeles by 2020, the high-speed rail project has faced delays and ballooning costs. The Merced-Bakersfield segment alone is expected to cost $36.75 billion.
Rail officials say the new commitment provides the long-term stability needed to keep construction on schedule and eventually expand toward California’s major urban centers.
Leave a Reply