California High-Speed Rail Provides 2025 Project Update

At the start of this month, the California High-Speed Rail Authority’s 2025 Project Update Report was submitted to the state legislature.

The report outlines key developments in the ongoing high-speed rail project. Notable updates include progress on the Merced to Bakersfield segment, funding adjustments, and changes to procurement and project management strategies aimed at accelerating construction.

The report also details the Authority’s efforts to engage with industry experts and secure stable funding for full system connectivity. A strategic focus on improving efficiency and collaboration with local governments is also emphasised.

The California High-Speed Rail Authority is focused on improving project delivery and optimising limited resources. A key strategy includes connecting the state’s high-speed rail to the Southwest High-Speed Rail Network, linking major cities including Las Vegas.

Under new leadership, the Authority aims to secure sustainable funding, maximise resource efficiency, and streamline operations to transition to a more effective project delivery structure.

Ian Choudri, California High-Speed Rail Authority Chief Executive Officer said:

As CEO of the California High-Speed Rail Authority, my focus is clear: Deliver the nation’s first true high-speed rail system. This is not just a transportation project; it is a transformative investment that will reshape California’s economy, infrastructure, and environmental leadership.

I have personally experienced how high-speed rail systems transform countries, regions, cities and communities. California High Speed Rail will also be an economic and environmental transformation catalyst — redefining transportation in the United States.

Achievements to Date

Since the 2024 Business Plan, the California High-Speed Rail Authority has made significant progress. Notable achievements include the start of civil construction in Kern County, the successful electrification of Caltrain in the Bay Area, and the completion of 18 grade separations.

Environmental clearance has been obtained for the Palmdale to Burbank segment, and agreements with local entities ensure environmental mitigation. Additionally, 14,700 jobs have been created, generating 21.8 billion USD in economic output.

The Merced to Bakersfield segment is progressing, with 99% of right-of-way parcels delivered.

Funding

The California High-Speed Rail Authority’s estimated revenue for the capital programme is between 26.7 billion USD and 29.7 billion USD, with 14.9 billion USD remaining in funding through 2030.

The infusion of federal funds in December 2023 has strengthened the funding baseline, particularly for the Merced to Bakersfield segment.

The Authority also engaged with private equity firms at its January 2025 Industry Forum and is refining its Design Criteria Manual to improve flexibility and achieve potential cost and schedule savings.

Key Risks and Issues

The California High-Speed Rail Authority’s key strategic risks include:

• Funding uncertainty
• Right-of-way acquisition and delivery
• Third-party management
• Legislative impact and policymaker support
• Infrastructure and asset maintenance

Key issues include:

• Encroachment permitting authority
• Third-party management
• Power generation

However, the Authority has successfully mitigated challenges such as construction quality control, staffing gaps, and funding shortages for the Bakersfield extension.

Project Review

The California High-Speed Rail Authority is conducting a comprehensive review of its design criteria, scope, cost methodologies, and project sequencing to improve cost-effectiveness and efficiency. A fresh review was initiated in autumn 2024 under new leadership to identify areas for refinement.

The results of this review, expected by summer 2025, will guide the future development of the project, with a supplemental report detailing all adjustments and refinements.