California legislators are injecting $20 billion in state funding to advance the California High-Speed Rail Project between Bakersfield and Merced.
The California High-Speed Rail Authority (CHSRA) announced the investment earlier this week, thanking state legislators for finalizing a funding agreement for the project. The $1 billion annual allocation through 2045 will advance segments of the over $130-billion-dollar project.
The funding will come from the state’s cap-and-invest program, which leverages vehicle emissions credit auctions to fund various capital projects. The current cap-and-invest program is slated to expire in 2030, though efforts are in place to renew the program to maintain steady rail funding.
The investment will resolve all identified funding gaps for the Early Operating Segment and expand opportunities for public and private engagement, according to CHSRA officials.
The injection of funds comes as CHSRA has been at the forefront of federal funding cuts targeting the high-speed rail project. In July, the Federal Railroad Administration announced that it would pull $4 billion in federal grants from CHSRA citing lack of progress and delays in construction. Federal courts are currently debating the legality of FRA’s grant rescissions.
The $20 billion state investment will counteract the project’s funding gaps and align with CHSRA’s recently released 2025 Project Update Report, outlining the agency’s latest push to construct the high-speed rail project.
In the supplemental report, CHSRA lays out three development scenarios designed to attract private developers looking to collaborate on the project. Beyond seeking developers for public-private partnerships, the report reestablishes the project, design alternatives and its current funding estimates.
The three development scenarios include:
- Merced – Bakersfield (cost: $36.75 billion): Completion of 171 miles of high-speed rail line currently under development. This segment is currently mandated by law.
- San Francisco – Gilroy – Bakersfield (cost: $54.4 billion): Construction of high-speed rail infrastructure for nonstop service from San Francisco to Bakersfield.
- San Francisco – Gilroy – Palmdale (cost: $87.12 billion): Construction of expanded high-speed rail infrastructure to Palmdale, connecting to existing Metrolink facilities and additional routes.
The report also introduced the results of an industry specific Request for Expressions of Interest in June. Industry respondents note that stable state rail funding would be essential to completing the project.
Now securing $20 billion over the next twenty years, state leaders anticipate continuing work and advancing the project’s first segment, Merced to Bakersfield.
CHSRA officials note steady progress on the high-speed rail project, citing nearly 70 miles of completed guideways, 58 finished structures and 29 additional structures under development across Madera, Fresno, Kings and Tulare counties. More than 171 miles are currently under design and construction from Merced to Bakersfield.
Design and construction work will continue along the planned corridor. CHSRA will provide updates as the project advances. Since development on the project began, it has generated more than 15,600 positions, with around 1,700 workers involved in daily work, according to state officials.
Photo courtesy of California High-Speed Rail Authority
