California’s high-speed rail project is entering a decisive phase. After years of delays and debates over funding, U.S. authorities are seeking to accelerate the development of the most ambitious rail project in the United States. The new infrastructure contracts and the 2026 Business Plan outline the direction for the coming years.
Designed to transform mobility in California, the future high-speed rail network will span 795 km in its first phase, connecting San Francisco to the Los Angeles metropolitan area and Anaheim in less than three hours. In a later phase, the system will be extended toward Sacramento and San Diego, becoming one of the largest high-speed rail networks planned in North America.
However, the project’s significance extends beyond California’s borders. The line is regarded as the first true high-speed rail system in the United States, capable of operating to the standards established in Europe and Asia. At the same time, the investment is considered a strategic project for reducing carbon emissions, increasing regional mobility, and fostering the economic development of one of the world’s most dynamic regions.
The project is making further progress
Currently, work is concentrated in the Central Valley, where construction is underway along 191 km. This is the most advanced segment of the project and includes dozens of active construction sites.
To date, 59 major structures—including viaducts, bridges, and overpasses—have been completed, while 129 km of track have already been laid. At the same time, the project authority has completed the acquisition of 99% of the land needed for this section, mitigating one of the main risks that have affected the project’s development in recent years.
However, progress is not limited to the Central Valley. Of the approximately 795 km in the first phase, nearly 745 km have already gone through environmental review procedures and are ready for the next stages of design and construction.
At the same time, design and preparatory work continues for the extension of the segment between Merced and Bakersfield, which will enable a more efficient connection of the future line to the regional rail network and lay the groundwork for the launch of the first commercial services.
Another important step was the approval of the team that will design and build the actual rail infrastructure—including the track, electrical systems, signaling, and telecommunications—marking the project’s transition from civil engineering work to components specific to the operation of a high-speed rail line.
New Contracts and the Search for Private Funding
After years in which attention was focused almost exclusively on civil engineering work, the project is entering a phase where the focus is shifting to the railway infrastructure itself. In June, the California High-Speed Rail Authority approved the selection of the team that will design and install the track, the power supply system, signaling, telecommunications, and other equipment necessary for commercial operation.
A consortium led by American companies—comprising Kiewit, Stacy Witbeck, and Herzog, will install the track, the catenary system, and the control and communications infrastructure needed to transform the 119 miles (191.5 km) of track already built in the Central Valley into an electrified high-speed rail system capable of reaching speeds of up to 354 km/h. This is the first contract of its kind awarded for a true high-speed line in the United States and represents a key milestone in the project’s development.
At the same time, the rail authority has launched a new procurement process for the line extension and civil works for the Merced–Madera section, a segment that will facilitate the integration of the future high-speed rail line with existing regional services and contribute to the development of a more efficient transportation network in the northern Central Valley. The contract is valued at USD 2.4 billion, and two consortia will be selected by the end of the year. According to the project schedule, construction is expected to begin in 2027 and be completed in 2030.
At the same time, California is seeking to diversify its funding sources. Late last year, a market consultation process was launched to attract private investors, with the authority aiming to identify partners interested in participating in the development and operation of the future infrastructure.
To this end, in June, the California High-Speed Rail Authority signed a co-development agreement with Momentum Alliance Partners, an international consortium of companies specializing in high-speed rail, infrastructure, and investment. The consortium brings together companies such as Plenary Americas, CDPQ Infra, Keolis, SNCF Voyageurs, Jacobs, Sener, Systra, Setec, Arup, and Steer, with the aim of supporting the financing and development of future network expansions through public-private partnership models and long-term commercial solutions. The initiative reflects a shift in strategy by the State of California, which is seeking to supplement public funds with private capital and expertise from the international industry.
Investment Costs for the California High-Speed Rail Project
Scenario Estimated Cost
Merced – Bakersfield: the first operational section in the Central Valley – USD 35.7 billion
San Francisco – Bakersfield – USD 106.2 billion
San Francisco – Palmdale: intermediate option – USD 96.9 billion
San Francisco – Los Angeles/Anaheim (Phase 1 – optimized option) – USD 126.1 billion
Phase 1: full project without proposed optimizations – USD 231.3 billion
Phase 1 of the project will connect San Francisco to Anaheim, via the Central Valley, in less than three hours.
Currently, 275 km of track between Merced and Bakersfield is in the design and construction phase. To date, over 128 km of infrastructure has been completed, along with 61 major structures, while another 30 are under construction in Madera, Fresno, Kings, and Tulare counties.
Statewide, the project is making significant progress: environmental permitting procedures have been completed for approximately 745 km (463 miles) of the 795 km (494 miles) route between San Francisco and Los Angeles/Anaheim, allowing construction to begin.
In addition to developing rail infrastructure, the project is generating significant economic benefits. Since work began, nearly 19,200 well-paying jobs have been created, most of which are held by residents of the Central Valley, and the estimated economic impact for California amounts to nearly USD 25 billion. Every day, up to 1,700 workers are on the project’s construction sites.
Phase 2 will extend the system to Sacramento and San Diego.
A strategic project, but one still facing challenges
The 2026 Business Plan highlights that the project is no longer viewed exclusively as an infrastructure investment, but as a catalyst for economic development, job creation, and the modernization of the state’s transportation system.
Despite the progress made, California’s high-speed rail line remains one of the most challenging infrastructure projects in the United States. Since its approval by referendum, the project has faced numerous obstacles, including litigation over land acquisitions, complex environmental procedures, successive changes to technical solutions, and significant increases in construction costs. These difficulties have led to a revision of the initial timeline and fueled debates regarding the financial sustainability of the investment.
However, the responsible authority maintains that the current situation differs radically from previous years. Most of the necessary land has already been acquired, civil works have reached an advanced stage, and the project is beginning to enter a phase in which the railway infrastructure itself takes priority. At the same time, identifying new sources of funding and involving the private sector are considered key to maintaining the pace of development.
Currently, the project’s success is no longer measured solely by the number of kilometers built, but also by the authorities’ ability to transform one of the world’s most ambitious rail initiatives into a functional and economically sustainable system. In addition to developing the rail infrastructure, the project is generating significant economic benefits. Since construction began, nearly 19,200 jobs have been created, and the estimated economic impact in California amounts to nearly USD 25 billion. Every day, up to 1,700 workers are on the project’s construction sites.
If the current schedule is followed, California could become the first U.S. state to launch a high-speed rail network comparable to those in Europe and Asia, opening a new chapter for rail transportation in the United States.
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