California High-Speed Rail Needs Another $100 Billion, Says CEO

Kelly testified in front of the State Senate’s Transportation Committee on the High-Speed Rail Authority’s updated draft business plan. In Tuesday’s hearing, Kelly told lawmakers the project has $28 billion dollars on hand, but noted it was still a few billion dollars short to complete the Central Valley segment between Merced and Bakersfield. Depending on how long the segment takes to finish, it could cost between $32 Billion to $35 Billion. Kelly said the project is hoping to fill the gap with federal funds. That segment of the project is expected to be fully operational between 2030 and 2033, Kelly said.

Project leaders estimate it will still need an additional $100 billion to finish what voters were originally pitched in 2008: a bullet train that runs between San Francisco and Los Angeles. A timeline on its completion has not been set as the authority waits for environmental clearances for those segments.

Gov. Gavin Newsom (D) originally canceled the northern and southern portions of the high-speed rail plan in 2019, saying they would “cost too much” and “take too long.” But he insisted on building the Central Valley portion of the rail.

President Donald Trump famously tried clawing back the funding that California had spent on the project. President Joe Biden restored interest in high-speed rail, including a privately-run line from Southern California to Las Vegas.

It is still unclear whether there is any public demand for rail service between San Francisco and Los Angeles, a route that is cheap and easy to travel by air. Demand for the Central Valley portion of the route is likely to be even lower.