HSR Authority reports $3.8 billion cash position, progress on Central Valley construction and A&K rail procurement

Chief Financial Officer Jamey Matalka briefed the Finance and Audit Committee on the Authority's April financial reports (data through February 2026), reporting a total cash position of approximately $3.8 billion composed of $123 million in Proposition 1A bond funds, $3.6 billion in greenhouse gas reduction funds and $14 million in the property management fund. The cash balance did not yet include February 2026 auction proceeds that Matalka said are projected to increase cash by $230 million when processed.

Matalka said cumulative expenditures to date total $15.7 billion. He reported a discrepancy in slides that should be noted: one slide states "approximately 84 percent" of cumulative expenditures has been funded by the state, while a later slide states "the state is funding 93 percent of this project overall." In committee questioning Director Ernest Camacho referenced a pie chart and Matalka answered 83.5 percent for the expended share the state provided.

On staffing and administration, Matalka said the Authority had 389 of 514 authorized positions filled for the reporting period (a 24% vacancy rate) and later reported three additional hires completed in March, bringing filled positions to 392 and reducing vacancy to just under 23% (to be reflected in the next reporting period after statewide position eliminations are processed).

Matalka described contracting and small-business metrics: 201 active contracts valued at $13.1 billion, $2.6 billion in remaining contract commitments, and 988 small businesses actively working on the project (a net increase of 10). Small-business utilization rose from 23.7% to 25.1% year over year and metrics for disabled veteran business enterprises exceeded pre-November 2023 goals.

On contingency use, Matalka reported seven executed items totaling approximately $10.5 million during the period and no HSR governance actions over $25 million. He said one transaction was a $16 million amendment to a Union Pacific Railroad (UPRR) coordination and services agreement to fund additional railroad-required services; the additional $16 million drew $5.9 million from CP1 reserves, $1.4 million from CP2-3 reserves and $1.7 million from CP4 reserves.

Matalka introduced a new lookahead slide tracking efficiency efforts, including MATOC utilization, and announced a procurement award to A&K Rail for rail materials to support laying track this year on the 190-mile Central Valley segment.

Chief of Construction Ed Fenn provided the Central Valley status update. For the month, combined CP1 and CP2-3 expenditures were $51.5 million and the project's budget contingency remained at 16.6%. Fenn reported 58 structures complete, 30 underway and four not started (all four in CP1); combined guideway (embankment) completion was reported at 68% and Fenn noted numbers typically lag one month in reporting.

Fenn said utility relocations were 93% complete (with 59 in progress and 68 not started, primarily ancillary relocations) and right-of-way acquisition was 99.8% complete. He noted the railhead was completed in October 2025, work continues on punch-list and site security, and the team is preparing facilities and utilities to host the TSCC contractor and Authority staff later in 2026.

Directors asked procedural questions about audibility and security at the railhead; Fenn said the team is coordinating security plans and will limit discussion of sensitive details. The committee took no formal financial action at the meeting but recorded the financial and construction updates for the board and public record.