California state report: High speed rail faces $6.5 billion funding gap, new delays

The California inspector general tasked with reviewing the state’s high speed rail program issued a new report stating the first segment is likely to be more than three years behind schedule and faces a $6.5 billion funding gap.

“Based on our review of the latest project information, the 2030 target date has been pushed back to 2031, in part because the Authority has extended the timeline for completing construction that is currently underway in the Central Valley,” wrote the Office of the Inspector General in its report. “With a smaller remaining schedule envelope and the potential for significant uncertainty and risk during subsequent phases of the project, staying within the 2033 schedule envelope is unlikely.”

Before the report’s release, Republican Congressman Kevin Kiley had announced a bill to eliminate further federal funding for the project.

The initial 171-mile project will run through the sparsely populated Central Valley and connect the cities of Merced and Bakersfield, with the goal to eventually add spurs to this “backbone” that connect Merced to San Francisco and Bakersfield to Los Angeles.

The first tracks were laid for the project, first approved by voters in 2008, at the start of January, highlighting the system’s lengthy delays.

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While estimates for the complete statewide project are as high as $135 billion, the inspector’s office noted in an October report that the Merced-Bakersfield segment will likely cost between $32 billion and $35 billion. The California High Speed Rail Authority has expected that it would be able to fill its $6.5 billion funding gap for the initial segment through federal grants, but, as the inspector had noted, and as Republicans have reiterated, that appears unlikely, especially with the current administration.

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