California High-Speed Rail faces $9.5 billion funding gap

A report from High-Speed Rail Inspector General Benjamin Belnap warns that the California High-Speed Rail Authority could exhaust its current funding resources as early as December 2027 if new financing is not secured. The project faces a $9.5 billion funding gap over the next five years, which could potentially add between $3.6 billion and $6.6 billion in interest costs.

Belnap’s findings indicate that the Authority’s 2026 business plan violates state law by failing to provide sufficient funding details and obscuring project timelines. Specifically, the schedule for the Merced to Bakersfield segment has been extended to September 2034, a change not adequately disclosed in the plan. The Inspector General noted that the Authority has previously failed to implement recommendations intended to improve transparency, thereby hindering legislative oversight.

Critics, including State Senator Tony Strickland, have characterized the project as wasteful, noting that neither the Legislative Analyst’s Office nor the Inspector General has identified a reliable funding source. The Legislative Analyst’s Office has described the proposed public-private partnership model as ‘risky’ due to its reliance on uncommitted funds.