Sacramento, California – California’s embattled high-speed rail project is entering another critical phase—this time with fewer federal dollars and more state pressure. Governor Gavin Newsom signed Assembly Bill 377 into law on Wednesday, requiring the California High-Speed Rail Authority to present a comprehensive funding strategy for the Merced-to-Bakersfield segment as part of its 2026 business plan.
The move comes just weeks after President Donald Trump’s administration officially revoked $4 billion in federal grant money for the project, calling it a “boondoggle” and citing unmet promises. California officials, who are suing to recoup the funds, argue that the decision is politically motivated and legally dubious. Meanwhile, the project’s costs have ballooned from $33 billion to an estimated $89–$128 billion, with only a fraction of the envisioned route under construction.
Originally pitched to voters in 2008 as a sleek, three-hour rail link between San Francisco and Los Angeles by 2020, the vision has since narrowed to a more modest 171-mile route between Merced and Bakersfield, now projected to open by 2033. Despite delays and rising expenses, Governor Newsom has continued to frame the rail as a generational investment in sustainable transportation, and a necessary infrastructure project amid the broader global race for high-speed rail dominance…