California high-speed rail leader pushes state to support private investment

SACRAMENTO, Calif. (AP) — A long-delayed project promising nonstop rail service between San Francisco and Los Angeles in under three hours may be able to secure the private funding it desperately needs if California agrees to pay the investors back, its chief executive told The Associated Press.

Ian Choudri, who was appointed CEO of the California High-Speed Rail Authority in August, is tasked with reinvigorating the nation’s largest infrastructure project amid skyrocketing costs and new fears that the Trump administration could pull $4 billion in federal funding.

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“We started this one, and we are not succeeding,” Choudri said, describing what drew him to the job after work on high-speed systems in Europe. “That was the main reason for me to say, let’s go in, completely turn it around, and put it back to where it should have been. Fix all the issues, get the funding stabilized, and demonstrate to the rest of the world that when we decide that we want to do it, we actually will do it.”

Voters first approved $10 billion in bond money in 2008 to cover about a third of the estimated cost with a promise the train would be up and running by 2020. Five years past that deadline, no tracks have been laid and Choudri acknowledges it may take nearly two more decades to complete most of the San Francisco-to-Los Angeles segment, even if funding is secured.

Funding woes

The project’s price tag now exceeds $100 billion, more than triple the initial estimate. It has mostly been funded by the state through the voter-approved bond and money from the state’s cap-and-trade program. A little less than a quarter of the money has come from the federal government.

The authority has already spent about $13 billion. The state is now out of bond money, and officials need to come up with a financing plan for the Central Valley segment by mid-2026, according to the inspector general’s office overseeing the project.

“The managers of the project were in trouble from the very beginning because they never had the financing – certainly not stable and predicting financing — that they would have needed to manage the project efficiently,” said Lou Thompson, who led a peer review group that analyzes the state’s high-speed rail plans.

Losing money from the federal government “would require a real hard rethinking of what do we do to survive the next four years,” he said.

Rail leaders are in talks with Gov. Gavin Newsom’s administration and state lawmakers on what will be needed to secure private investment, Choudri said, adding that without the private sector money the state may have to take out federal loans or issue new bonds. At an industry forum in January, private investors expressed interest in the project but need some form of security, he said.

Choudri is pushing Newsom and lawmakers to consider a program that would eventually commit the state to paying back private investors, possibly with interest. That would give the state more time to cover the cost.

Legislative Democrats say they remain hopeful for the project’s future. But they haven’t unveiled any proposals yet this year in the state Legislature to set aside additional funding and have resisted spending more money on the project in the past.

Choudri plans to provide lawmakers this summer with an updated timeline and price tag.

An ambitious vision

Choudri aims to fulfill the original vision of building a pioneering system — already common in Europe and Asia — that spurs economic growth, curbs planet-warming emissions from cars and planes, and saves drivers hours on the road.

At speeds up to 220 miles (354 kilometers) per hour, it would be the nation’s fastest way to travel by ground.

Amtrak’s Acela train transports passengers at speeds up to 150 miles (241 kilometers) per hour to major cities including New York, Boston and Philadelphia. Another rail line in Florida operating at speeds up to 125 miles (201 kilometers) per hour shuttles people from Orlando to Miami.

Construction is underway for a mostly privately funded high-speed system to carry riders from Las Vegas to Southern California.

California’s construction is far from completion. Of the 119 miles (192 kilometers) of construction underway in the Central Valley, only a 22-mile (35-kilometer) stretch is ready for the track-laying phase, which isn’t set to start until next year.

Finishing the line in the Valley is just the first step. Next, the train has to extend north toward the San Francisco Bay Area and south toward Los Angeles. Choudri’s goal is to build to Gilroy, about 70 miles (113 kilometers) southeast of San Francisco. Under current public transit, it would then take at least one more train transfer to get into the city.

Southward, he envisions building to Palmdale, 37 miles (60 kilometers) northeast of Los Angeles. From there, it takes more than one hour to drive or two hours on an existing train line to reach Los Angeles.

“In the ideal world, you can take the 500 miles, build it in your warehouse and then just drop it and everybody’s happy,” Choudri said. “But the programs are never built like that. You build incrementally and that’s what we’re doing right now.”

Doubts for the future

Critics say the project will never be completed and may leave towering and unusable infrastructure stretching through the state’s agricultural heartland. More than 50 structures have already been built, including underpasses, viaducts and bridges to separate the rail line from existing roadways for safety.

“We’ve now spent billions of dollars and really no tracks have been laid,” said Republican state Sen. Tony Strickland, who is vice chair of the Senate Transportation Committee.

Doug Verboon, chair of the Kings County Board of Supervisors, who has fought the High-Speed Rail Authority in court over farmers’ loss of land due to the project, said the people who should be most upset by delays are its longtime supporters.

“It doesn’t seem to me like the state government is in a hurry to finish it,” he said.

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Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna