High-speed rail project slated to received $20 billion in state funding

"This funding agreement resolves all identified funding gaps for the Early Operating Segment in the Central Valley and opens the door for meaningful public-private engagement with the program,"

"And we must also work toward securing the long-term funding - beyond today's commitment - that can bring high-speed rail to California's population centers, where ridership and revenue growth will in turn support future expansions."

California plans to allocate $1 billion per year from the cap-and-trade program for 20 years to support the high-speed rail project, addressing identified funding gaps for the Early Operating Segment in the Central Valley. The funding aims to enable completion of a 171-mile Merced-to-Bakersfield segment by 2033 and to attract meaningful public-private engagement. The project faces large cost overruns from the original $33 billion estimate to roughly $133 billion and lost federal funding threats, prompting state legal action. Supporters emphasize the project's economic and transit innovation benefits while regional leaders seek inclusion of population centers.

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