When Arnold started this scam as governor, he claimed that this was a public/private partnership. In the over twenty years, almost NO private funds were invested in this boondoggle. Private firms knew it could not be built—and if built, very few could afford the price of a one-way ticket—and the very rich already have private planes.
Now, once again, they want private folks to lose money in a government created scam. The good news is that it will not happen. Any investor stupid enough to put up their own money deserves to lose it.
“According to Choudri, the Rail Authority is currently talking with Governor Gavin Newsom and state legislators about how private funding is needed to help fill major funding gaps, with the only alternates being expensive federal loans and the issuing of new bonds. As there has been fatigue from giving more funding from both state and federal sources, with the Trump administration currently trying to halt as much funding for the rail system as possible, private funding has come forward as an increasing viable way to help pay for the system. Choudri, however, did warn that there would be significant interest to pay on the loans, as investors would want security guarantees and a significantly high rate to counter the high amount of risk involved, as well as the growing timescale of the project.”
Will the Democrats offer tax credits for the investors when they lose their money? That would mean we the people will be financing the scam again.
Faltering California High-Speed Rail Pushes Private Funding To Fill Massive $7-$11 Billion Funding Gap
Even worse for the CHRSA, the state is now out of bond money
By Evan Symon, California Globe, 4/30/25 https://californiaglobe.com/fr/faltering-california-high-speed-rail-pushes-private-funding-to-fill-massive-7-11-billion-funding-gap/?fbclid=IwY2xjawJ_hTZleHRuA2FlbQIxMABicmlkETFpemN4WFV2TmxiY2tpUm93AR4mjWWiW1ebNodGZvC1uOQNAbIAQyH2ZtaT9QvkaPi1JtFPI9Z1L2R1hfFtnw_aem_4yBFUN_voX00weYz7MFRlA
California High-Speed Rail Authority CEO Ian Choudri announced Wednesday that he will be pushing the state to start accepting more private funding for the rail project, especially with a $7 billion funding gap set to come into play in mid-2026, and an additional $4 billion in federal funding currently on the line in Washington.
According to Choudri, the Rail Authority is currently talking with Governor Gavin Newsom and state legislators about how private funding is needed to help fill major funding gaps, with the only alternates being expensive federal loans and the issuing of new bonds. As there has been fatigue from giving more funding from both state and federal sources, with the Trump administration currently trying to halt as much funding for the rail system as possible, private funding has come forward as an increasing viable way to help pay for the system. Choudri, however, did warn that there would be significant interest to pay on the loans, as investors would want security guarantees and a significantly high rate to counter the high amount of risk involved, as well as the growing timescale of the project.
“We started this one, and we are not succeeding,” said Choudri on Wednesday. “That was the main reason for me to say, let’s go in, completely turn it around, and put it back to where it should have been. Fix all the issues, get the funding stabilized, and demonstrate to the rest of the world that when we decide that we want to do it, we actually will do it.
“In the ideal world, you can take the 500 miles, build it in your warehouse and then just drop it and everybody’s happy. But the programs are never built like that. You build incrementally and that’s what we’re doing right now. We are in talks with Gov. Gavin Newsom’s administration and state lawmakers on what will be needed to secure private investment. Without the private sector money the state may have to take out federal loans or issue new bonds.”
Private funding for high-speed rail
Originally estimated to cost $33 billion in 2008 with a San Francisco to Los Angeles line to open by 2028, the California high speed rail system has since ballooned to $128 billion, then $135 billion+, with an estimated partial completion somewhere in the late 2030’s. And last year, CHRSA actually confirmed that the system still needed $100 billion to link up San Francisco and Los Angeles. The true cost may also be much higher than anticipated, with some estimates during the Governorship of Jerry Brown putting that figure at around $350 billion. While the $13 billion already spent on the project has come through voter approved bonds and the cap-and-trade program, about a quarter has come from federal sources,
President Trump announced in February that he would be launching an investigation into CHSRA, fulfilling a promise his administration made to look into the system. Specifically, he noted that the high cost of the program was mind-boggling, echoing decades of criticisms within California that the project has been nothing more than a boondoggle. That promise came true a few weeks later, with Transportation Secretary Sean Duffy announcing a compliance review of funding for the CHRSA, with $4 billion of federal funding currently at stake for California. This was compounded last month by the California Legislative Analyst’s Office telling lawmakers that California High-Speed Rail needs $7 billion in funding by June 2026 or else the first Bakersfield to Merced leg of the system could be delayed further into the 2030’s, with costs rising as a result as well. Even worse for the CHRSA, the state is now out of bond money.
“There is no specific plan to meet that roughly $7 billion gap, we also think there is some risk that gap could grow,” confirmed LAO Principal Fiscal & Policy Analyst Helen Kerstein in March. “This isn’t a way out in the future funding gap. This is a pretty immediate funding gap.”
As a result, the CHRSA was more reliant on federal funds going into 2025, only for the Trump administration to begin the process of cancelling grants. This led to Choudri to announce he was seriously looking at private investment as another funding source. However, opponents of California’s high-speed rail system in both Sacramento and Washington have increasingly been calling for California to drop the project and cut their losses at $13 billion. While there has been some infrastructure constructed so far, including bridges, track laying only began this year, 17 years into the project.
“California’s high-speed rail project has failed because of political ineptitude, and there is no plausible scenario where the cost to federal or state taxpayers can be justified,” said Congressman Kevin Kiley (R-CA) in a statement earlier this year. “Our share of federal transportation funding should go towards real infrastructure needs, such as improving roads that rank among the worst in the country.”
“We’ve now spent billions of dollars and really no tracks have been laid,” added Senator Tony Strickland (R-Huntington Beach).
As of Wednesday, no potential private funders have been named.
