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By Martha McHardy
US News Reporter
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California's high-speed rail project could grind to a halt in a month if it does not make up its $7 billion shortfall, California Legislative Analyst Office representative Helen Kerstein told lawmakers this week.
Why It Matters
Despite recent construction progress, California's high-speed rail project has suffered from several delays and a ballooning budget. President Donald Trump has already been critical of the project, calling it a "waste" and a "green disaster."
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What To Know
At a budget hearing in the state assembly Wednesday, Kerstein told lawmakers that the project is now $7 billion short of what it needs by next June. She added that there is currently no plan to address the shortfall and that there is a "risk" that the deficit could grow.
With no plan in sight, Kerstein says the project could halt in as little as 15 months.
Initially pitched to voters in 2008 as a $40 billion high-speed rail line connecting Los Angeles and San Francisco, the California bullet train project has seen its price tag balloon to at least $100 billion, with most of the funding still unrealized.
Although the state has spent roughly $14 billion on the project, it needs more than twice that amount to complete the Merced-to-Bakersfield segment, which officials hope to finish between 2030 and 2033.
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Amid the enormous costs, some lawmakers have questioned whether the project should continue.
At the budget hearing on Wednesday, California Assemblyman Steven Bennett criticized the bullet train project, warning that the state has no clear plan and faces a short window to address worsening issues. Assemblymember Cottie Petrie-Norris echoed the concerns, calling the project review process poorly timed and comparing the state's repeated missteps to insanity, urging a new approach.
Assemblymember Alexandra Macedo said the state lacks the time and money to finish the project and called for its abandonment, claiming it is "never going to happen."
Earlier this year, the Trump administration launched an investigation into the use of approximately $4 billion in federal funds for the project. Eighteen Republican California lawmakers later formally supported Trump's decision to investigate the project.
In a letter sent on February 13, the state legislators emphasized the necessity of scrutinizing the project's feasibility and holding the California High-Speed Rail Authority (HSRA) accountable.
"Promised to be completed by 2020 with a price tag of $34 billion, HSRA's projected budget ballooned to over $128 billion," the letter reads.
"Voters were told that more than 20 percent of the project would be privately funded. Instead, taxpayers face the reality of single-handedly funding massively inflated costs for a project that many will never use or see completed.
"The HSRA has spent $13.7 billion in total, including $1.6 billion on professional marketing materials and consultants. The only partially completed segment so far connects a field and an orchard and has cost $1.4 billion for 22 miles of raised dirt; along with 11 overpass structures. Zero feet of track have been laid to date.
"By all metrics, the High-Speed Rail is a colossal failure."
The probe is ongoing, and lawmakers have warned that the administration could block future funding or attempt to reclaim federal dollars already allocated.
A spokesperson for the California High Speed Rail Authority told Newsweek they are conducting a comprehensive review of the project to identify cost and schedule efficiencies. They added that the authority remains on track to complete the Merced-to-Bakersfield segment as scheduled.
Mark Tollefson, the chief of staff for the High-Speed Rail Authority, also told lawmakers the project's new CEO is working to review the project overall.
California Governor Gavin Newsom recently supported the high-speed rail project on his podcast.
"We did the rail head, we're starting to lay track. This thing is starting to get very, very real," Newsom said. When questioned about the shortfall, he replied, "At the end of the day, we've got these constraints that are well established and existing constraints."
"There's not a high-speed rail system that doesn't have some popularity and success, most are wildly popular, it's an experience no one has had in the United States of America, at least we're out there daring," he said.
What People Are Saying
A spokesperson for the California High Speed Rail Authority: "As noted in the 2025 Project Update Report, the Authority is currently engaged in a top-to-bottom review of the project, examining every aspect to identify cost and schedule efficiencies, those findings will be provided to the legislature in a supplemental report this summer. The Authority remains on track to deliver the Merced to Bakersfield segment as currently scheduled."
California Legislative Analyst Office representative Helen Kerstein: "There is no specific plan to meet that roughly 7 billion dollar gap from Merced to Bakersfield. We also think there's some risk that that gap could grow."
Assemblyman Steven Bennet: "We have no plan, we have a good likelihood it's going to get worse, and we have a short time to solve the problem. That's not a good place for government to put itself into."
Assemblymember Cottie Petrie-Norris: "The timing of the project review seems totally out of whack with when we need to be making decisions. The definition of insanity is doing the same thing over and over again and expecting a different outcome."
Assemblymember Alexandra Macedo: "I was in middle school when this happened. "We don't have the time, we don't have the money, we just need to pull the plug on this project. it's never going to happen."
What Happens Next
A spokesperson for the California High Speed Rail Authority told Newsweek that an updated funding report for California High-Speed Rail is expected later this summer. Meanwhile, State Senate Transportation Committee Chair David Cortese told Sacramento news station KCRA 3 he hopes to schedule a hearing on the high-speed rail project in May.
The California High-Speed Rail Authority plans to begin construction on stations in the Central Valley in 2025. The first high-speed rail services in California are expected to start after 2030, and the full route aims to be operational by 2050.
Update 3/28/25, 04:50 a.m. ET: This article was updated with comment from the California High Speed Rail Authority.
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