The long-delayed and often doubted California high-speed rail project has received a new push after Governor Gavin Newsom approved a law that may secure fresh funding.
This comes after former President Donald Trump cut $4 billion in federal support, leaving the state to find other ways to keep the project alive.
Why It Matters
The high-speed rail has faced years of setbacks—rising costs, missed deadlines, and shrinking trust. Still, construction is already happening in the Central Valley, and rail-laying is expected to start soon. Stopping the project now, as some in Washington have suggested, would waste years of work and billions already spent.
Trump, a strong critic from the start, went further last year by officially removing critical federal funds, making California’s job even harder.
The New Law
In response, Governor Newsom signed Assembly Bill 377. This law requires the California High-Speed Rail Authority to prepare a detailed financial plan for the Merced-to-Bakersfield section. The plan must include updated cost estimates, risk reviews, and clear steps for starting service.
The project was first approved by voters in 2008 as a $33 billion plan to link San Francisco and Los Angeles in under three hours. Today, its cost has grown to as much as $128 billion, and the first phase now focuses only on a 171-mile stretch in the Central Valley, expected to finish by 2033.
Funding Challenges
The loss of federal money created a major funding gap. To fill it, Newsom has suggested extending California’s cap-and-trade program, which already brings in about $1 billion each year for the rail, until 2045.
At the same time, state leaders are debating whether to expand the route north to Gilroy and south to Palmdale. These connections could bring in more riders and make the system attractive to private investors who could help finish the full line.
Leaders Speak Out
Governor Newsom criticized the federal withdrawal, saying:
“Trump wants to hand China the future and abandon the Central Valley. We won’t let him. While Texas has struggled with its project, California is moving ahead. We are close to tracklaying, and this will be America’s only real high-speed rail. We’ll fight this unfair decision with every option.”
Ian Choudri, CEO of the California High-Speed Rail Authority, added:
“Canceling these grants without cause is not just unfair—it’s unlawful. We have met all the federal requirements, confirmed in recent reviews. With 171 miles under construction, 15,500 jobs created, and more than 50 major structures already built, this is no time to abandon the future of U.S. transportation.”
What’s Next
The Authority will deliver its updated business plan and funding strategy to lawmakers in 2026. For now, California plans to fight in court to recover the lost grant while also seeking private investors to help close the financial gap.
The project faces big risks, but if it continues, California could still be the first state in the nation to run a true high-speed rail.
