SACRAMENTO, Calif. — California’s high-speed rail project has gained its most significant financial boost to date, with state leaders reauthorizing the Cap-and-Invest program and guaranteeing $1 billion annually through 2045. The deal provides a steady stream of revenue for the nation’s first high-speed rail system, ensuring long-term progress and stability.
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“I am grateful to Governor Newsom, our legislative leaders, and allies across the state and the nation – including those in the labor community – whose partnership and resolve helped make this possible. Today’s agreement has made a big, bold statement about California’s future—one that will create jobs, cut pollution, and connect and transform communities across the state,” said Authority CEO Ian Choudri.
The reauthorization marks a turning point for the project, which has faced years of political battles, legal hurdles, and funding uncertainties. Choudri emphasized that the agreement closes identified funding gaps for the Central Valley’s Early Operating Segment while also opening the door to deeper public-private partnerships.
“This funding agreement resolves all identified funding gaps for the Early Operating Segment in the Central Valley and opens the door for meaningful public-private engagement with the program. As we move forward, I am greatly encouraged by commitments to continue productive discussions with the Administration and the Legislature to put in place statutory and regulatory enhancements that accelerate construction and give greater certainty on time and schedule for segment delivery. And we must also work toward securing the long-term funding—beyond today’s commitment—that can bring high-speed rail to California’s population centers, where ridership and revenue growth will in turn support future expansions.”
The California High-Speed Rail Authority continues work on 171 miles of track from Merced to Bakersfield, the first operational section of the system. To date:
The system as a whole is also advancing. Out of the planned 494-mile route between San Francisco and Los Angeles/Anaheim, 463 miles have been fully environmentally cleared, making them construction-ready.
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Since breaking ground, the high-speed rail project has become a major economic driver in the Central Valley:
Officials say the guaranteed $1 billion annual revenue stream will help keep thousands of workers employed while ensuring steady progress toward California’s long-term vision of connecting its largest population centers by high-speed rail.
The Authority frames the agreement as not only a win for California but also a national example of bold infrastructure investment in the face of federal resistance. The project is advancing despite political opposition, including attempts by the Trump Administration to rescind federal funding.
Choudri said the state’s decision signals confidence in the transformative potential of high-speed rail: “This funding agreement has made a big, bold statement about California’s future.”
If completed as planned, California’s system will be the first true high-speed rail network in the United States, designed to cut travel times between San Francisco and Los Angeles to under three hours while reducing carbon emissions and easing highway and airport congestion.
Originally reported by California High Speed Rail Authority.
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