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SUGGESTED VIDEO: High-speed rail facility in Kern County finished
Now $100 billion over budget, the train will run from Gilroy to Palmdale and is expected to be completed by 2039.
LOS ANGELES - The California high-speed rail project, once envisioned as a landmark infrastructure achievement, is facing intense pressure to be abandoned completely as costs spiral more than 700% above initial estimates.
State leaders and federal officials are now questioning the viability of a system that has yet to begin service six years after its original deadline.
What we know:
Originally pitched to voters in 2008 with a $33 billion price tag and a 2020 completion date, the project's costs are now predicted to exceed $231 billion.
The California High-Speed Rail Authority’s (CHSRA) 2026 business plan indicates that even the initial Phase 1 segment will not be finished until 2032.
This comes after the federal government under President Donald Trump pulled $4 billion in funding, and the state has dropped its subsequent lawsuit to recover those funds.
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Current construction is focused solely on a 171-mile stretch between Merced and Bakersfield rather than the original Los Angeles-to-San Francisco route.
What we don't know:
It's unclear if the project can secure enough private investment to bridge the massive funding gap left by the withdrawal of federal support and state budget deficits.
There is also significant political uncertainty regarding whether the next California Governor will maintain the project or follow calls from lawmakers like Sen. Tony Strickland to "pull the plug" to address the state's multi-year budget deficit.
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PREVIOUS COVERAGE: Las Vegas-to-California high-speed rail project cost rises to $21 billion
The projected cost for the new high-speed rail line between Southern California and Las Vegas has increased by nearly 35%, from $16 billion to $21.5 billion.
Timeline:
- 2008: California voters approve initial bond funding; project estimated at $33–$45 billion.
- 2019: Governor Newsom scales back plans to focus on the Central Valley, citing a lack of transparency.
- 2020: Original target date for project completion passes without service.
- July 2025: The FRA pulls $4 billion in federal funding from the project.
- March 2026: Peer review group chair Lou Thompson calls the project a "dead end."
- April 2026: CHSRA business plan projects costs of $231 billion and a 2032 start date for the Central Valley segment.
What they're saying:
"This is a project that will never be built, and everybody in this building knows this project will never be built for the people of California and we keep wasting billions of dollars at a time where we have budget deficits," State Sen. Tony Strickland told Fox News Digital.
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"I’ve been saying this for years now, but this is the most wasteful government project in probably world history," he told the New York Post.
What's next:
State legislators will likely debate the project’s future during upcoming budget hearings as California grapples with its deficit.
The CHSRA is expected to continue its search for private capital, though skepticism from both the public and private sectors remains high.
The Source: This report is based on a Draft 2026 Business Plan from the California High-Speed Rail Authority and formal statements provided to Fox News Digital and the New York Post by state and federal officials.