California moves to accelerate high-speed rail construction with new funding and partnerships

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California Construction News staff writer

California plans to expand construction on its high-speed rail line connecting San Francisco and Los Angeles, with new funding and potential private partnerships, California High-Speed Rail Authority CEO Ian Choudri said Thursday.

At a meeting, Choudri outlined plans to speed up construction on segments beyond the Central Valley, marking a significant step forward in the long-running project. The Authority is preparing to vet private investors, who will submit proposals to design, build, and operate portions of the rail line.

The move follows the State Assembly’s August vote to appropriate $1 billion annually for high-speed rail through 2045, providing a stable funding base that is expected to attract private investment.

“The funding has always been the biggest constraint to get anything organized in the right order,” Choudri said, noting that work on high-ridership segments connecting the Central Valley to Gilroy and Palmdale could unlock revenue to fund the accelerated timeline.

Currently, construction is limited to the 119-mile Central Valley segment, running from Merced to Bakersfield. That segment has produced 55 completed structures and 70 miles of guideway, with projected annual ridership of about 2 million and $90 million in revenue. By contrast, the Gilroy-to-Palmdale line could attract 18 million riders annually and generate $2 billion in revenue, according to an Authority analysis released in August.

Choudri said about 30 entities have expressed interest in partnering with the Authority, including “six or seven of the largest investors.” He expects a team will be selected by mid-2026.

The Authority also plans to explore revenue opportunities through fees, advertising, sponsorships, leasing retail space, and telecommunication infrastructure, while pursuing regulatory reforms to enforce deadlines and cost controls.

Despite ongoing criticism and past funding challenges, recent actions signal that California high-speed rail is moving forward. If successful, the project promises to offer fast, safe, and sustainable transportation between the state’s major population centers.

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