Sacramento, California – California’s high-speed rail project, often derided as a boondoggle and hailed as a vision of the future in the same breath, has secured something it has rarely enjoyed in its turbulent history: financial certainty.
This week, Governor Gavin Newsom signed legislation guaranteeing the California High-Speed Rail Authority $1 billion annually from the state’s cap-and-trade revenues through 2045. The move extends the state’s cap-and-invest program by 15 years and ensures a steady stream of money for a project that has been plagued by budget overruns, shifting timelines, and persistent political opposition.
The commitment represents a lifeline. For years, the rail authority has been forced to cobble together grants and one-time appropriations, always operating with the specter of cancellation hovering above. While federal funding has been instrumental—until the Trump administration revoked a key tranche earlier this summer—the state’s new pledge means construction will continue regardless of Washington’s mood swings…