The California High-Speed Rail Faces Funding and Forecast Challenges

The California High-Speed Rail may lose $4 billion in federal funding as state authorities push forward with the first segment linking Madera and Poplar Avenue in Kern County. This is reported by the railway transport news portal Railway Supply.

The project’s initial 119-mile stretch will extend into a 171-mile operating segment between Bakersfield and Merced by 2033. Madera has nearly 70,000 residents, while Poplar Avenue lies near Shafter, a city of 20,000.

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California High-Speed Rail Authority (CHSRA) claims this portion will cost between $32.7 billion and $36.3 billion. Annual revenue from the state’s cap-and-trade program provides $1 billion, helping to close the $6.5 billion funding gap.

The California High-Speed Rail Defends Ridership Projections

CHSRA argues its high-speed trains will travel over 200 mph, offering faster service than Amtrak’s Northeast Corridor. They also highlight the network’s broader city-to-city options compared to limited airline routes.

Federal officials, however, question the agency’s optimistic forecasts. Analysts from the Reason Foundation note that CHSRA’s estimates exceed ridership levels seen in Japan’s Shinkansen or France’s TGV systems.

Moreover, CHSRA denied claims from the FRA that the agency’s Inspector General criticized the projected 2 million riders for the Bakersfield–Merced segment. According to CHSRA, no such statement was made by the OIG.

The California High-Speed Rail Faces Budgetary Uncertainty

If the federal government withdraws its $4 billion pledge, California may struggle to find new funding sources. The state recently avoided a budget deficit with temporary measures and spending cuts.

According to the Legislative Analyst’s Office, California has “no capacity for new commitments.” This could hinder the broader vision of connecting Los Angeles and San Francisco via high-speed rail.

CHSRA insists the early segment will launch as planned, but long-term viability depends on securing private investment and achieving competitive travel times and fares.

Source: www.myhometowntoday.com

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