California’s long-delayed high-speed rail project has drawn renewed scrutiny over its spending, construction timeline, land acquisitions and rising projected costs, as authorities prepare to begin laying rail track in the Central Valley.
California’s high-speed rail project, approved by voters in 2008, is facing renewed criticism over its cost and progress nearly two decades after the state began pursuing a rail connection between Northern and Southern California. The project has spent about $15 billion, according to recent federal and media estimates, while the California High-Speed Rail Authority says major civil construction is underway on a 119-mile Central Valley segment between Merced and Bakersfield.
The California High-Speed Rail Authority says more than 80 miles of guideway have been completed, along with more than 60 major structures. It also says 99% of the properties needed for the current program are in hand.
The distinction is important because the project has not yet begun installing the main high-speed rail track along the Central Valley guideway. That is expected to change later in 2026. In June, the authority approved an American-led consortium of Kiewit, Stacy Witbeck and Herzog to install electrified track, overhead power systems, train-control and communications infrastructure.
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California project costs continue to draw scrutiny
The original 2008 plan envisioned a statewide high-speed rail system connecting San Francisco and Los Angeles/Anaheim. The project’s projected cost has increased substantially since then. The U.S. Department of Transportation said in July 2025 that approximately $15 billion had been spent after 16 years and cited a projected total cost of $135 billion at the time.
More recent estimates have put the potential cost considerably higher depending on the scope and financing assumptions. The California High-Speed Rail Authority’s 2024 business plan estimated the capital cost of Phase 1, covering San Francisco to Los Angeles/Anaheim, at between $89 billion and $128 billion.
A recent Wall Street Journal report cited a current estimate of about $126 billion, with a potential high of $231 billion, depending on how the project is ultimately completed. The authority’s 2026 business plan has sought to reduce costs and focus on delivering an initial operating segment before completing the entire statewide system. The authority says streamlining efforts reduced the Phase 1 projected cost by $1.7 billion.
Track has not yet been installed on the Central Valley alignment
The project’s most visible progress so far has largely involved land acquisition, design, bridges, viaducts, stations and other civil infrastructure rather than the installation of high-speed rail track. The authority currently describes 119 miles of active construction in the Central Valley. It says more than 80 miles of guideway are complete and 171 miles are in design and construction when associated extensions are included.
The agency has now moved into the next phase. The track and systems contract approved in June covers the 119-mile Central Valley corridor and future extensions toward Merced and Bakersfield. The authority says the system is being designed for speeds of up to 220 mph.
China comparison highlights the scale of California’s challenge
The video also compares California’s progress with China’s high-speed rail expansion. China’s network has expanded dramatically since the late 2000s. According to China’s government, its operating high-speed rail network exceeded 50,000 kilometers, or roughly 31,000 miles, by the end of 2025.
China added 2,862 kilometers of high-speed rail lines in 2025 alone, according to official Chinese railway data. The comparison, however, involves two projects of very different geographic and institutional scales. China’s figures refer to its nationwide high-speed rail network, while California’s project is a single state infrastructure program that is still under construction.
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Land and farmland remain part of the project debate
Land acquisition has been another contentious aspect of California’s rail project. The High-Speed Rail Authority acknowledges that private property owners have been affected by the proposed system and maintains a right-of-way process for acquiring land needed for construction.
Agricultural land has also been acquired along parts of the proposed alignment. The authority maintains an agricultural mitigation program and has entered into agreements with Central Valley agricultural organizations to address the project’s impact on farmland. Those agreements include measures to preserve important agricultural land and mitigate effects on farming operations.
The authority’s current data show thousands of acres of important farmland have been acquired in counties along the Central Valley route. The agency says it has also conserved 3,474 acres of agricultural land as part of its environmental mitigation efforts.
Contractor and procurement issues add to scrutiny
The project’s contracting history has also faced scrutiny. The authority maintains reports covering payments to prime contractors and has continued to revise contracts and construction packages as the project moves forward.
The authority’s current procurement schedule shows major contracts for track and systems construction have been awarded, while additional civil works and infrastructure contracts remain in procurement. The authority says the project has generated significant economic activity during construction. Its latest figures show more than 19,000 jobs created, 132,150 job-years of employment and $10.5 billion in labor income between July 2006 and March 2026.
The authority also reports $26.9 billion in economic output associated with the program during that period.
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Federal funding dispute
The project has also faced changes in federal support. In July 2025, the U.S. Department of Transportation announced that the Federal Railroad Administration had terminated approximately $4 billion in unspent federal funding for the California project. The department cited concerns about delays, cost increases and project management.
California officials and the High-Speed Rail Authority have continued pursuing state funding and other financing mechanisms. In June 2026, the authority also entered a co-development agreement with Momentum Alliance Partners to explore private investment and public-private partnership models for future expansion.
What happens next
The immediate test for California’s high-speed rail program is whether it can move from civil construction to actual railway installation.
The authority says track and systems installation is scheduled to begin in 2026 along the Central Valley segment. It has described the Merced-to-Bakersfield corridor as the initial operating segment that could demonstrate the system before further expansion. The broader Phase 1 system remains planned to connect San Francisco with Los Angeles/Anaheim. The authority says 463 of the 494 miles in that Phase 1 system are environmentally cleared and construction-ready.
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The project’s future therefore depends on a combination of construction progress, additional funding, land acquisition, procurement and decisions over how quickly the system can expand beyond the Central Valley. For California taxpayers and communities along the alignment, the central questions remain the same: how much the completed system will ultimately cost, when passengers will be able to use it and how effectively the state can convert billions of dollars already invested into an operating high-speed rail service.