News Summary
California Governor Gavin Newsom has signed Assembly Bill 377, mandating the California High-Speed Rail Authority to develop a comprehensive funding plan for the rail segment from Merced to Bakersfield. Highlighting the project’s vital role in modernizing transportation and driving economic growth, Newsom’s action aims to tackle budgetary challenges and secure federal funding. The estimated costs of the project have surged, with state proposals allocating substantial funds for the initiative’s advancement. Despite setbacks, a renewed commitment to the high-speed rail’s completion offers hope to residents.
California Governor Gavin Newsom has officially signed Assembly Bill 377, which requires the California High-Speed Rail Authority to develop a comprehensive funding plan for the high-speed rail segment running from Merced to Bakersfield. This plan will incorporate updated cost estimates, risk assessments, and options for service initiation, and must be submitted as part of the authority’s 2026 business plan.
During the signing of the bill, Newsom highlighted that the high-speed rail project is a vital investment for the future of California, asserting its importance in modernizing transportation and stimulating economic growth in the state. The bill was authored by Central Valley Assemblymember David Tangipa, who emphasized that the funding plan is essential to prevent further waste of taxpayer dollars on a project that has faced numerous budgetary and logistical challenges.
Currently, the California High-Speed Rail Authority is engaged in legal action against the previous Trump administration to secure $4 billion in federal funding, which could prove crucial for the project’s future. Despite setbacks that pushed the original operational timeline back by almost a decade, the Authority anticipates that trains could start running by 2030.
Originally estimated at $33 billion, the overall cost of completing the high-speed rail project has ballooned significantly, with projections now ranging between $89 billion and $128 billion. In response to these rising costs, Governor Newsom’s budget proposal allocates $1 billion annually for the next two decades to help fund the initial operating segment of the high-speed rail system.
As part of the ongoing construction efforts, several road closures are currently in effect near the Fresno Chaffee Zoo due to utility work related to the high-speed rail project. These closures on Olive Avenue are within Construction Package 1, which covers the first 32-mile segment of the rail line between Madera and Fresno counties. Specific closures from West to Carruth avenues will occur daily from 9 a.m. to 4 p.m. until August 8. Additional road closures between Golden State Boulevard and West Avenue will continue from 9 p.m. to 6 p.m. until September 22.
The project has encountered various challenges over the years. After the announcement of intention by the Trump administration to retract $4 billion in grants, a federal report suggested that the High-Speed Rail Authority might not complete the rail project. The report criticized the authority for missed deadlines and a vague plan to address significant funding gaps, which have now been estimated at $14 billion due to risks associated with federal funding. Since 2009, taxpayers have contributed more than 70% of the $13 billion spent on the project, while the federal government has contributed roughly $6.9 billion.
In addition to financial and logistical challenges, plans for the high-speed rail project have been complicated by political disagreements and competing demands for the state’s cap-and-trade funds. In an effort to address these ongoing issues, Governor Newsom has proposed a new approach to funding that incorporates cap-and-invest strategies to extend financial resources for climate programs, which include the high-speed rail initiative.
The signing of Assembly Bill 377 signals a renewed commitment from the state government to pursue the long-delayed high-speed rail project and to seek a viable funding solution to ensure its completion. As planning and construction continue, California residents remain hopeful that the high-speed rail will eventually become a reality, connecting key cities and providing an environmentally friendly transportation alternative.
Deeper Dive: News & Info About This Topic
- ABC30 News
- Wikipedia: High-speed rail in California
- Fresno Bee
- Encyclopedia Britannica: High-speed rail
- San Francisco Chronicle
- Google News: California High-Speed Rail
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
