California High-Speed Rail Faces $7 Billion Shortfall Threatening Progress

With no clear plan to address the deficit, the project risks halting within 15 months as scrutiny and delays mount.

The California Legislative Analyst Office reported a $7 billion funding gap that could halt the high-speed rail project by mid-2026 if unaddressed.
The Merced-to-Bakersfield segment, under construction, is now delayed to 2030-2033, with the full Los Angeles-to-San Francisco route projected for 2050.
The project’s budget has ballooned from $40 billion in 2008 to over $100 billion, with significant portions of funding still unrealized.
Governor Gavin Newsom remains a vocal supporter, emphasizing progress and potential benefits, while critics, including some lawmakers, call for its abandonment.
A federal investigation into $4 billion in funding and a delayed updated financial report have intensified scrutiny of the project’s management and feasibility.