Construction continues Wednesday, March 30, 2022 on pillars for High Speed Rail in Hanford just north of Highway 198.
California – A high-speed rail line once billed as a transformative project linking San Francisco and Los Angeles in under three hours remains mired in delays, cost overruns, and uncertain funding more than 15 years after voters approved the initial investment.
The California High-Speed Rail project, first backed by a $10 billion bond measure in 2008, was supposed to be operational by 2020. Instead, zero miles of track have been laid, and the cost has ballooned to more than $100 billion—triple the original estimate.
Ian Choudri, the newly appointed CEO of the California High-Speed Rail Authority, is now working to resuscitate the troubled effort. A European high-speed rail development veteran, Choudri has made it his mission to “turn it around” and demonstrate that the U.S. can deliver infrastructure projects of global caliber.
But doing so won’t be easy. The project has already spent $13 billion and exhausted its initial bond funding. It relies heavily on state cap-and-trade revenue, and just under a quarter of funding has come from the federal government. That contribution could be in jeopardy if the Trump administration returns to office and withdraws $4 billion in federal support — a move that Choudri and others warn would force a major rethink.
The project’s most immediate challenge is securing new financing for the Central Valley segment — the only portion under construction. Of the 119 miles in progress there, only 22 miles are even close to being ready for track installation, which won’t begin until 2025. The state must finalize a financing plan for the segment by mid-2026.
Choudri is now lobbying Governor Gavin Newsom and lawmakers to back a proposal that would provide repayment guarantees to attract private investors. Without that assurance, he warns, California may have to take out costly federal loans or approve additional bonds — both politically tricky options in a state already facing budget pressures.
At a January industry forum, private investors showed interest but made clear they would only commit with some form of repayment security. Choudri argues such backing would buy the state valuable time and help secure long-term support for the project.
Even if funding is secured, progress will be incremental. Choudri’s current goal is to connect the Central Valley segment north to Gilroy and south to Palmdale — stops still hours from the final destinations in San Francisco and Los Angeles. Travelers would still need additional trains or drives to complete their trips.
Critics say it’s too little, too late. “We’ve now spent billions of dollars and really no tracks have been laid,” said State Sen. Tony Strickland, vice chair of the Senate Transportation Committee. Others fear the initiative will stick California with abandoned infrastructure stretching through farmland.
Still, Choudri remains focused on the long game. “You build incrementally,” he said. “And that’s what we’re doing right now.”
We’re expecting a revised budget and construction timeline this summer — and with it, perhaps a final verdict on whether California’s high-speed dream can still be salvaged.
