New cost estimate for high-speed rail puts California bullet train $100 billion in the red

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New cost estimate for high-speed rail puts California bullet train $100 billion in the red
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When Gov. Newsom unveiled his scaled-down blueprint for the California bullet train four years ago, he proposed building a starter segment in the Central Valley that would begin operating in 2030 and cost $22.8 billion. Today, the blueprint is fraying.

Construction on the High-Speed Rail over a ramp above Highway 99 in south Fresno on March 3, 2023.

The cost estimate for the initial 171-mile segment now exceeds the $33 billion estimate for the entire 500-mile Los Angeles to San Francisco system when voters approved a bond in 2008. The roughly $10 billion cost increase on the Merced to Bakersfield line includes $3.9 billion mostly for the decisions to have elevated stations and track realignments in Merced and Bakersfield; $2.1 billion for higher inflation; and $3.7 billion in contingency or reserves for future cost increases.

Bakersfield native and now House Speaker Kevin McCarthy has long called the project, which would serve his own district, a boondoggle. “They don’t directly address the hard core engineering issues,” Ibbs said, particularly the 38 miles of mountain tunnels that are planned for Southern California alone. “What are the major engineering challenges that lie in front of you and why aren’t you talking about them in this report?”The report also indicates that the date for operating the 171-mile system could stretch out to 2033 from 2030, which would delay the public benefits and account for cost pressures.

Construction has been held up because of problems relocating utilities, such as underground sewers, water lines and gas pipes. Currently, about half of the 2,800 projects to relocate underground utilities have not been completed, according to a separate status report issued by the rail board’s finance and audit committee. Two dozen major structures, such as viaducts and bridges, have not even started construction.

At this point, Jones says the project should be stopped and potentially the existing structures in the Central Valley demolished if they can not be repurposed.“While this news is difficult, the Administration continues to review all available options, including ongoing efforts to receive additional federal dollars,” wrote Daniel Lopez, the deputy communications director for Newsom, in a statement to CalMatters.

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