TECH

California’s high-speed rail is running out of money, but progress has been made

PUBLISHED WED, MAY 17 2023 • 8:13 AM EDT • UPDATED WED, MAY 17 2023 • 8:58 AM EDT

Jeniece Pettitt
@JENIECEP

KEY POINTS
• California’s plan is to build an electric train that will connect Los Angeles with the Central Valley and then San Francisco in two hours and 40 minutes.
• But 15 years later, there is not a single mile of track laid, and executives involved say there isn’t enough money to finish the project.
• Estimates suggest it will cost between $88 billion and $128 billion to complete the entire system from LA to San Francisco.

In 2008, California voted yes on a $9 billion bond authorization to build the nation’s first high-speed railway. The plan is to construct an electric train that will connect Los Angeles with the Central Valley and then San Francisco in two hours and 40 minutes.

But 15 years later, there is not a single mile of track laid, and executives involved say there isn’t enough money to finish the project. The latest estimates from the California High-Speed Rail Authority suggest it will cost between $88 billion and $128 billion to complete the entire system from LA to San Francisco. Inflation and higher construction costs have contributed to the high price tag.

The project has spent $9.8 billion so far, according to Brian Kelly, CEO of the California High-Speed Rail Authority. ... “We knew we’ve had a funding gap ever since the project started,” Kelly said. “What I know is this: The earlier we build it, the cheaper it will be.”

But at this point, it’s not clear where the funding is going to come from. So far, 85% of it has come from the state of California. ... “One of the biggest hurdles clearly is funding,” said Toks Omishakin, secretary of the California State Transportation Agency. “We can’t get this project done without federal support. It’s just not going to happen.“

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