Funding & Finance for High-Speed Rail

Capital funding to develop the high-speed rail project will come from federal, state, local and private sources. These funds will be available to the California High-Speed Rail Authority (Authority) at different times based on the development timeline of the system.

Developing the first segment of the Initial Operating Section (IOS) from Madera to Bakersfield will cost $6 billion, consisting of $3.3 billion in federal funding and $2.6 billion in Proposition 1A bond proceeds. The remaining portions of the IOS will be funded using state bonds, federal support, and local funds. Cap and Trade funds are also available as needed, upon appropriation, as a backstop against federal and local support to complete the IOS.

The Bay to Basin system is expected to be funded using a mix of federal, local, and other funds, as well as private-sector capital. Likewise, the complete Phase 1 Blended system is expected to be funded in a similar manner.

Once the IOS is under construction and work has begun on blended improvements in Northern and Southern California, the Authority will begin to build the remainder of the IOS with initial attention on closing the passenger-rail gap between Bakersfield and the Los Angeles basin. Development of the IOS will be funded through government sources, while private-sector capital will fund future construction segments once the system is generating positive cash flow.