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California Strikes Deal to Give High‑Speed Rail $1 Billion a Year Through 2045

State leaders say the guarantee would close Central Valley funding gaps, enabling borrowing and private investment.

Stock Image: The Special 50th Anniversary Livery Amtrak ALC-42 Locomotive No.301 powered Coast Starlight Train from Los Angeles to Seattle.
California High-Speed Rail Authority crews work at the Hanford Viaduct construction site on Tuesday, April 15, 2025, in Kings County, Calif. (AP Photo/Godofredo A. Vásquez)
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Overview

  • Lawmakers are slated to vote Saturday on extending cap‑and‑trade to 2045 and setting a continuous $1 billion annual allocation to the rail authority starting in 2030.
  • Project officials say the funding resolves shortfalls for the 171‑mile Merced‑to‑Bakersfield segment and positions the line for completion by 2033 as construction advances.
  • The U.S. Department of Transportation rescinded roughly $4 billion in grants in July, and California has sued to preserve that federal money.
  • Critics warn a fixed draw on auction proceeds could undercut other climate and community programs if revenues fall, prompting calls for escrow rules, triggers, and independent audits.
  • The rail authority plans to borrow against the new revenue stream and pursue public‑private partnerships, even as total system costs have risen from an initial $33 billion estimate to well over $100 billion.