SACRAMENTO, Calif. — The California High-Speed Rail Authority is preparing to close a long-running legal dispute through a settlement that would authorize a $537.3 million change order, the largest single adjustment in the history of the multibillion-dollar rail project.
The proposal has quickly become entangled in a broader political debate at the state Capitol. Several lawmakers believe the costly agreement is connected to newly introduced legislation that would allow the project’s inspector general to withhold certain records if their release could expose vulnerabilities or harm the state’s interests. Rail officials strongly reject that claim.
The authority’s board voted unanimously on Jan. 21 to approve the settlement with Dragados Flatiron Joint Venture, the contractor responsible for designing and building a 65-mile segment through Fresno, Tulare and Kings counties. The legislative proposal surfaced one day earlier, fueling suspicion among critics.
In public works projects, a change order formally modifies the original contract to account for added tasks, altered designs or unexpected field conditions. Such revisions typically translate into higher costs and longer schedules.
Dragados Flatiron Joint Venture has already accumulated 597 change orders since construction began, according to agency records. If finalized, the new agreement would push the company’s total change-order value well beyond $1 billion, underscoring the financial turbulence that has plagued the rail program.
A spokesman for the authority insisted the settlement is solely about resolving claims and accelerating construction, not about limiting public oversight.
"This action reflects the Authority’s renewed commitment to delivering with urgency and accountability," said Micah Flores, the rail authority's spokesman, referring to the change order. "It resolved outstanding claims and critically, ties payment to achieving defined performance milestones and completing the work necessary to accelerate track-laying this year. We remain focused on converting construction progress into a track-ready corridor as quickly as possible."
Flores added that full details of the agreement would be published on the agency’s website in the coming weeks.
Despite those assurances, Republican Assemblywoman Alexandra Macedo, whose district covers much of the construction corridor, said the timing of the bill raises serious red flags.
"That's the kind of stuff we can hide with this new bill," she said, noting the proposal aims to shield weaknesses that don't serve the interest of the state. "The inspector general's report has been gold. But now to add another layer of secrecy to a project that has been scrutinized for its lack of transparency, for its lack of results, for its failure on promises and now amidst all of the claims of fraud, waste and abuse, lawmakers think this is a good idea? Absolutely not."
Democratic Assemblywoman Lori Wilson, chair of the Assembly Transportation Committee, countered that the measure is being mischaracterized. She said it would simply provide the inspector general with confidentiality tools already used by other oversight agencies and would not be used to conceal cost information.
The California High-Speed Rail project has faced years of criticism over ballooning budgets and shifting timelines. Initially envisioned as a San Francisco–to–Los Angeles system costing around $40 billion, estimates now exceed $100 billion with full completion decades away.
Supporters argue the rail line will eventually transform travel and reduce greenhouse gas emissions, while opponents say escalating change orders demonstrate chronic mismanagement. The Dragados Flatiron contract alone covers complex viaducts, river crossings and utility relocations—work that has generated hundreds of disputes.
The authority maintains that settling outstanding claims is essential to keeping crews focused on laying track in 2026 and beyond. Lawmakers on both sides, however, vow to scrutinize whether the record-breaking payout delivers real progress or simply papers over deeper problems.
Originally reported by Ashley Zavala in KCRA.
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