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High‑Speed Rail board accepts $35.6 billion 2026 program baseline and $3.6 billion FY 2026–27 capital budget
Summary
Citing refined cost estimates and new Cap‑and‑Invest revenue, the board accepted a $35.6 billion program baseline to deliver a Merced–Bakersfield core segment and approved a $3.6 billion capital budget for FY2026–27, while noting continued reliance on expected out‑year funding.
The California High‑Speed Rail Authority board on June 24 accepted a $35.6 billion 2026 program baseline and approved a $3.6 billion fiscal‑year 2026–27 capital budget, staff said.
Chief Financial Officer Jamey Matalka told the board the new baseline reflects a $1.08 billion net decrease from the 2025 baseline, driven by more detailed track and systems quantities, a shift to bottoms‑up estimating methods and updated station, power and utility assumptions. “A new total baseline budget of $35.6 billion is the cost estimate to deliver a core high‑speed rail system between Merced and Bakersfield by 2033,” Matalka said.
The staff presentation cited $40.4 billion identified in available project funding from greenhouse‑gas reduction funds, federal sources and Proposition 1A bond funds and noted SB 840’s statutory allocation will provide $1 billion annually beginning in 2026–27. Matalka added that $246 million of forecasted federal funds remained to be drawn down and that staff were pursuing an additional federal grant of nearly $1.8 billion to support the Merced extension.
Board members pressed staff on funding certainty and contingency planning. Director Jason Elliott asked whether federal grants could be clawed back; Matalka said Authority staff meet monthly with the Federal Railroad Administration and were not aware of clawbacks, and that the Authority continues to pursue outstanding grants. CEO Ian Choudri warned that contracts awarded assuming the new funding profile could be “significantly impacted” if out‑year revenue assumptions changed and said staff would report back if funding access could not be secured.
The board approved the baseline and budgets on a roll‑call vote. Director Lynn Schenk voted yes; Chair Steve Kawa, Directors Ernest Camacho, Jason Elliott and Henry Perea and Vice Chair Anthony Williams also voted in favor. The motion carried.
