The California High-Speed Rail project could finally attract private capital if state leaders provide financial guarantees, according to the Authority’s CEO Ian Choudri. This is reported by the railway transport news portal Railway Supply.

California’s $35 billion California high-speed rail project urgently demands a $7 billion bailout. Officials target completion of the Central Valley segment by 2033 despite hurdles
A simulated image of California’s future state-developed high speed rail project. ©Photo courtesy the California High Speed Rail Authority

Choudri, appointed in August, aims to rescue the California High-Speed Rail plan—originally designed to link San Francisco and Los Angeles in under three hours. He emphasized that a turnaround requires stable funding and public-private cooperation.

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Voters approved $10 billion in bonds back in 2008 to cover a third of the original budget, expecting completion by 2020. Today, the estimated cost has skyrocketed to over $100 billion, and no track has yet been laid.

California High-Speed Rail Needs Stable Financial Backing

The state has contributed most funding so far, including from its cap-and-trade program. Federal contributions have accounted for less than 25%. With bond funds exhausted, California must develop a financing plan for the Central Valley section by mid-2026.

To date, the authority has spent approximately $13 billion. Without additional funds, the San Francisco-to-Los Angeles corridor could remain incomplete for another 20 years, Choudri warned.

Private Investment Critical for California High-Speed Rail Future

Choudri is in active discussions with Governor Gavin Newsom’s administration and lawmakers. He stated that without private sector involvement, the state may need to issue new bonds or seek federal loans.

Private investors showed interest at a recent industry forum, but they need state-backed repayment guarantees. Lou Thompson, head of the state’s peer review panel, noted that lack of consistent funding has plagued the project from the start.

Losing federal support could trigger a full reassessment of the project’s future. To prevent further delays, Choudri is focused on restoring trust and positioning California’s high-speed rail as a viable, long-term infrastructure solution.

Source: ca.finance.yahoo.com

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