California’s high-speed rail project faces major challenges

The head of California's High-Speed Rail Authority warned that without stable funding sources, the multibillion-dollar project faces further delays and cost increases. 

CEO Ian Choudri delivered this message during a board meeting, just two weeks after the Trump administration announced a compliance review of the project.

"I have come to a conclusion, if we do not stabilize a funding approach on this, the inefficiencies will continue to pose a risk to schedule and cost," he said during the meeting. Choudri noted industry experts have developed a plan and he continues to communicate with Gov. Gavin Newsom's office, the state Department of Finance, and the Legislature.

Choudri's remarks come as the project faces new federal scrutiny that could threaten crucial funding commitments. The recently announced federal review will examine a $4 billion pledge made during the Biden administration for construction in California's Central Valley.

The high-speed rail project has consistently struggled with timeline and budget issues, challenges that board members, transit experts, and project leadership have acknowledged in previous meetings. The first segment of the rail line is now expected to open in 2033 – 13 years after the entire project was originally scheduled for completion in 2020.

Budget concerns are equally pressing. The current estimated cost has swelled to approximately $130 billion, more than four times the $30 billion initially proposed. Both lawmakers and a state-appointed advisory group have indicated private investment will be essential to complete the project.

Opposition to the rail project continues to mount. Representative Kevin Kiley, a Republican from Rocklin and longtime critic of the rail line, recently called for an FBI investigation. In a letter sent to FBI Director Kash Patel, Kiley questioned the project's financial management.

"How is it possible to have spent over $13 billion without a single station opening? Where have these funds gone? Who benefited from that," Kiley wrote. This follows his earlier introduction of legislation to defund the project and request for a Department of Transportation probe.

The rail authority responded by welcoming the investigation, stating on social media platform X that the project has undergone more than 100 audits. "Every dollar is accounted for and progress is real — 50 structures built, 14,600 jobs created and 171 miles under construction," the authority posted.

Board Chair Tom Richards noted more than 80% of the project's spending has been funded through the state. Construction activities are currently limited to a stretch in the Central Valley, with the segment connecting Bakersfield to Merced projected for completion by 2033.

While the entire route from San Francisco to Los Angeles received environmental clearance for construction last year, there is no definitive timeline for when work might begin on other sections of the line.

A former CHSRA leader, Brian Kelly, emphasized the project's regional significance, noting plans to establish a southwest corridor including Arizona and New Mexico. He also reiterated his intention to connect with the privately owned Brightline West project that would link Southern California to Las Vegas.