California high-speed rail could run out of money by December 2027, as authority cuts train order in half
The watchdog's review warns the $4 billion federal funding loss now leaves the project needing billions in financing within 16 months — as the rail authority acknowledges for the first time that it still has no train contract, has cut its order from six trains to three, and has dropped the "Buy America" requirement.
California's high-speed rail project could run out of funds by December 2027 unless the state borrows billions, warns the project's inspector general. The authority has exhausted its current funding and faces a $9.5 billion funding gap over five years, with potential interest costs of $3.6 billion to $6.6 billion. This comes as the authority missed deadlines to buy the central trainsets, a key issue in a $4 billion federal funding dispute.
The authority now has half the original order for trains, with no guarantee on delivery by February 2030. The procurement contract has been revised, removing federal Buy America requirements, which could impact whether the trains are built in America. Both legislative transportation committees are now investigating the lack of train purchases.
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