SACRAMENTO, Calif. – California’s long-debated high-speed rail project remains years behind schedule and billions over budget, but lawmakers say it is still essential for the state’s future economy, environment, and housing development.

First approved by voters in 2008 with an initial budget estimate of $33 billion, the project’s costs have since skyrocketed. Current projections place the total price tag at as much as $128 billion—nearly four times the original plan. Of that, about $87 billion would be required just to connect Palmdale to Gilroy, south of San Jose. That critical section, however, is not expected to be operational until at least 2038.

At present, construction is limited to the Central Valley, where work continues on a segment that state officials hope will eventually serve as the backbone of the entire system.

In a press conference this week, state leaders and transportation officials reiterated their support for the project and highlighted a new legislative push to secure funding through Senate Bill 545, which aims to open up new financial pathways.

“This is how we grow our economy and cut pollution at the same time,” said state Sen. Dave Cortese, chair of the Senate Transportation Committee. Cortese added that the project is not only about transportation but about broader development opportunities.

“A majority of voters continue to support this project,” Cortese said. “We know that—with support even higher among younger generations who see this as part of their future. Why wouldn’t they?”

Backers argue that the rail line, once complete, would slash greenhouse gas emissions, reduce traffic congestion, and create a corridor for both residential and commercial development. Cortese emphasized that SB 545 could accelerate transit-oriented housing and job growth along the line.

Still, the project faces powerful headwinds in both politics and funding. Just last month, the Trump administration announced it would pull back $4 billion in federal funding previously allocated to the project. The California High-Speed Rail Authority has since filed a lawsuit to restore the funding, and that legal battle remains unresolved.

Critics, including President Donald Trump and Transportation Secretary Sean Duffy, have dismissed the project as a “train to nowhere,” questioning its feasibility and fiscal responsibility.

Despite the challenges, advocates insist California’s high-speed rail is not just a transportation project but a long-term investment in the state’s climate goals, economic competitiveness, and livability. Whether it can overcome its financial and political hurdles, however, remains an open question.

Originally reported by Marc Cota-Robles in ABC 7 Witness News.