California High-Speed Rail Could Run Out of Money by 2027: What It Means for Taxpayers

California’s high-speed rail project is facing a serious cash crunch. A new report from the state inspector general warns the project could exhaust its current funding as soon as December 2027. That’s a little over a year away, and it comes with a stark warning: the authority’s own business plan isn’t being upfront with lawmakers about the severity of the situation. The inspector general said the authority“obscured basic facts about the project,”which makes it harder for the legislature to provide oversight.

The numbers are staggering. California has already spent $18 billion on high-speed rail. The first segment planned, from Merced to Bakersfield, is now expected to cost at least $36 billion, and it might not be done until September 2034. That delay is another major blow to a project that was originally pitched as a way to connect Los Angeles and San Francisco in under three hours. The project has also lost $4 billion in federal funding and has not secured private investment to make up the difference.

Lawmakers in Sacramento have until August 31st, the end of the current legislative session, to address this looming crisis. The state budget passed this summer included no new money for the project. So what happens next? That’s what everyone from Sacramento to the Central Valley wants to know. Do you think the state should keep pouring money into high-speed rail, or is it time to pull the plug?