NEWS RELEASE: Building Smarter, Faster: High-Speed Rail Authority to Advance Bold Vision with Private Sector
May 15, 2025
SACRAMENTO, Calif. – Interest from the private sector in investing in California’s High Speed-Rail project is strong – and continuing to grow.
In January, the Authority hosted an industry forum that brought together more than 400 experts from around the world to discuss strategies to build the system smarter and faster. This outreach opened the door for meaningful private sector engagement, including interest from private equity firms exploring new financing opportunities. It marked the first instance of such large-scale industry collaboration, and the Authority has continued to build on that momentum – gathering ongoing insights on how to shape future partnerships with private industry through sustained engagement.
Governor Gavin Newsom is proposing a guaranteed minimum of $1 billion per year of Cap-and-Trade proceeds through 2045. A guaranteed minimum funding level will improve project planning and delivery and create options for project delivery, including potentially making the project more attractive to private capital. This will resolve the number one risk for completion of Merced to Bakersfield – funding uncertainty – and will address the funding gap previously identified by the Authority’s Office of the Inspector General. This will help accelerate project delivery, lower long-term costs, and increase flexibility. It will also help mitigate escalation risk, which has been one of the largest drivers of increase project costs.
Since joining the Authority in the Fall of 2024, CEO Ian Choudri set clear and urgent goals for the program:
- Right-size the project and build in the correct sequence – finding cost savings in a measured, responsible manner while staying laser-focused on starting track installation, testing, and operations within the initial 119 miles, and expanding service from there.
- Build faster, smarter, and more economically – by rethinking how we plan and execute construction.
- Cut red tape and streamline operations – removing unnecessary processes and organizational redundancies that slow progress.
- Implement a new vision focused on connecting major population centers sooner – creating the conditions necessary to attract private investment into the program.
- Stabilize state funding and financing mechanisms – working closely with the Legislature to enact the state’s funding commitment.
The Authority is preparing to release a Request for Expression of Interest (RFEI) in the coming weeks to begin the process of formal industry consultation for potential public private partnerships to drive creative solutions that deliver project segments faster and more efficiently while commercializing assets – such as trainsets, station facilities, track access, fiber, and real estate – at the earliest viable opportunity. Additional opportunities include transit-oriented development, express cargo and parcels movement, and the leasing of assets to the private sector.
Since the start of construction in 2015, California’s high-speed rail project is delivering real results:
- Construction is active across 119 miles in the Central Valley.
- Design and pre-construction activities are underway on the extensions to Merced and Bakersfield totaling 171 miles
- Over 50 major structures are completed
- In total, construction is underway or completed on 85 out of 93 structures (91%).
- Construction is underway or completed on 96 of the initial 119 miles of guideway (81%).
- 99% of the properties needed for the initial 119 miles are in hand.
- 463 miles of the 494-mile San Francisco to Los Angeles/Anaheim system is fully environmentally cleared and construction ready.
- 15,241 good-paying private sector construction jobs created, with 97.4% filled by Californians.
- Over 1,600 workers are dispatched weekly on average to more than 25 active construction sites.
- Of the $13 billion invested in the project, 97% went to California firms and workers.
- More than 70% of the jobs created have been filled by residents of the Central Valley.
- Over $1.84 billion paid to more than 900 certified small businesses working on the high-speed rail project statewide, including:
- $859 million paid to 296 Certified Disadvantaged Business Enterprises
- $323 million received by 107 Certified Disabled Veteran Business Enterprises.
- The project has generated $8.3 billion in direct labor income, and nearly $22 billion in total economic activity.
- More than 250 pre-apprentices have completed Authority-funded construction program training.
For the latest on high-speed rail construction, visit www.buildhsr.comExternal Link.
The following link contains recent video, animations, photography, press center resources and latest renderings: https://hsra.app.box.com/s/vyvjv9hckwl1dk603ju15u07fdfir2q8External Link.
Files are all available for free use, courtesy of the California High-Speed Rail Authority.
Build More, Faster
Speakers Bureau
The California High-Speed Rail Authority Speakers Bureau is managed by the Communications Office and provides informational presentations on the High-Speed Rail Program.
Contact
Micah Flores
916-715-5396 (c)
Micah.Flores@hsr.ca.gov