California High-Speed Rail Plots New Way Forward
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The California High-Speed Rail Authority has said that private investment interest in the state's rail network is on the rise. The announcement comes after President Donald Trump threatened to withdraw federal funding for the project, which is the largest high-speed rail initiative in the United States.
Newsweek reached out to the California High-Speed Rail Authority via email for comment.
Why It Matters
It's taken a lot of time and money for California's high-speed rail project to reach this point. Originally approved by voters in a 2008 ballot initiative, the track aims to connect California's two biggest cities, Los Angeles and San Francisco, via the Central Valley, linking with several other smaller areas that have historically not benefited from transport infrastructure.
The project has been delayed several times and required additional federal funding in 2019, prompting Trump to brand it a "waste" and a "green disaster."
What To Know
California officials said that private sector interest in the project was "continuing to grow" after hosting a forum with industry leaders in January.
"This outreach opened the door for meaningful private sector engagement, including interest from private equity firms exploring new financing opportunities," the authority said in a statement.
"It marked the first instance of such large-scale industry collaboration, and the Authority has continued to build on that momentum – gathering ongoing insights on how to shape future partnerships with private industry through sustained engagement."
The authority also said that California Governor Gavin Newsom, who has fiercely defended the project from Trump's attacks, had proposed a minimum of $1 billion per year of Cap-and-Trade proceeds to back the project.
Rendering of a high-speed train as part of the California High-Speed Rail project.
Rendering of a high-speed train as part of the California High-Speed Rail project.
California High-Speed Rail Authority
"This will resolve the number one risk for completion of Merced to Bakersfield – funding uncertainty – and will address the funding gap previously identified by the Authority's Office of the Inspector General," the authority said.
In a February report, Inspector General Benjamin M. Belnap said: "Based on our review of the latest project information, the 2030 target date has been pushed back to 2031, in part because the Authority has extended the timeline for completing construction that is currently underway in the Central Valley.
"With a smaller remaining schedule envelope and the potential for significant uncertainty and risk during subsequent phases of the project, staying within the 2033 schedule envelope is unlikely."
What People Are Saying
Ian Choudri, CEO, California High-Speed Rail Authority, in a statement: "After 200 days in this role, I'm proud to report that all five of these initiatives are well into the implementation phase. Notably, our outreach to the private sector has been met with strong and growing interest.
"While each of these actions is advancing rapidly, a major priority is to bring private capital into the program by early next year. Now is the time for California to show leadership by seizing this 'once in a project lifetime opportunity' to unlock private capital and build the future of transportation in California."
What Happens Next
The California High-Speed Rail Authority plans to begin the tracklaying phase in 2025 and construct stations in the Central Valley.
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