California High-Speed Rail Authority’s latest business plan violates state law

The California High Speed Rail Authority Board on Wednesday delayed a vote on the project’s proposed business plan as state lawmakers and officials warn the plan lacks transparency, key cost information and violates state law.Project leaders in February released their 2026 draft business plan that state law requires. It’s meant to include specific details on how they plan to complete the bullet train line currently focused on a segment between Bakersfield and Merced, while providing an update on the effort to complete the original plan for a line between San Francisco and Los Angeles.The plan claims the Bakersfield to Merced line will cost $36 billion with the goal of completing it by 2033. It also states the original plan for San Francisco to Los Angeles could cost between $126 billion and $231 billion. At a hearing in the State Senate’s Transportation Committee on Monday, the project’s inspector general and a legislative adviser warned the plan lacks details required by state law related to the cost and schedule. The plan also assumes California lawmakers and the governor will make several changes to state law around permitting for the project, and states there would be significant changes to the project that have not been authorized. As a result, officials warned the state could be in a position where it’s moving forward with less train for more money with little transparency.Among the significant changes is a plan to move the location of the planned high-speed rail station in Merced, which was expected to be built downtown. The draft business plan would move it to a more suburban area, but it is obscure about the details and impact to the project overall, officials said. Project officials hope this could make the project cheaper by shaving off nine miles from the Central Valley segment. The business plan also changes the project from a double-track high-speed rail system to a single-track system, which some lawmakers worry may not actually make the train high-speed. Helen Kerstein with the California Legislative Analyst’s office and project’s Inspector General Benjamin Belnap warned lawmakers Monday that the draft plan lacks transparency around those major changes. Belnap told lawmakers the plan is missing various details that are required in state law, including the need for the public to be able to compare project cost estimates year to year. He and Kerstein said the business plan is also missing an adequate funding strategy to actually complete the Bakersfield to Merced line, which could be short billions of dollars. “My office has reviewed the draft business plan and found it falls short of complying with statutory requirements that allow the legislature to have a clear view of project conditions and be able to hold project officials accountable for those conditions,” Belnap said. “I am concerned that the authority appears to be making strategic decisions about what information it shares in annual reports.”Belnap provided a handout to lawmakers showing the specific information required under state law that is missing from the plan. “This is a disaster,” State Sen. Catherine Blakespear, D-San Diego, told Belnap in response. “It definitely appears deceptive; I find myself feeling really angry about that,” she said in response to the changes in project scope and lack of transparency about it in the plan. When the rail authority board meeting started Wednesday in Sacramento, Chairman Tom Richards announced the vote on the business plan would be tabled until May.He said the delay was “to address a large volume of public comments as well as to have the authority to continue coordinating with the administration.”KCRA 3 tried to interview California High Speed Rail Authority CEO Ian Choudri after the meeting mainly to talk about the business plan. A spokesman for Choudri said he would only do the interview if journalists limited their questions to the business plan, prohibiting questions about Choudri’s personal matters that forced him to go on administrative leave earlier this year.KCRA 3 would not agree to those terms and the interview did not happen. A spokesman for the High-Speed Rail Authority said late Wednesday afternoon that the board will consider the plan on May 20th and formally send the finalized version to the California Legislature by June 1. The spokesman said the delay will allow the authority to review the feedback its received on the plan and also align it with state budget negotiations that are finalized at the end of June between lawmakers and the governor. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

SACRAMENTO, Calif. —

The California High Speed Rail Authority Board on Wednesday delayed a vote on the project’s proposed business plan as state lawmakers and officials warn the plan lacks transparency, key cost information and violates state law.

Project leaders in February released their 2026 draft business plan that state law requires. It’s meant to include specific details on how they plan to complete the bullet train line currently focused on a segment between Bakersfield and Merced, while providing an update on the effort to complete the original plan for a line between San Francisco and Los Angeles.

The plan claims the Bakersfield to Merced line will cost $36 billion with the goal of completing it by 2033. It also states the original plan for San Francisco to Los Angeles could cost between $126 billion and $231 billion.

At a hearing in the State Senate’s Transportation Committee on Monday, the project’s inspector general and a legislative adviser warned the plan lacks details required by state law related to the cost and schedule. The plan also assumes California lawmakers and the governor will make several changes to state law around permitting for the project, and states there would be significant changes to the project that have not been authorized.

As a result, officials warned the state could be in a position where it’s moving forward with less train for more money with little transparency.

Among the significant changes is a plan to move the location of the planned high-speed rail station in Merced, which was expected to be built downtown. The draft business plan would move it to a more suburban area, but it is obscure about the details and impact to the project overall, officials said.

Project officials hope this could make the project cheaper by shaving off nine miles from the Central Valley segment. The business plan also changes the project from a double-track high-speed rail system to a single-track system, which some lawmakers worry may not actually make the train high-speed.

Helen Kerstein with the California Legislative Analyst’s office and project’s Inspector General Benjamin Belnap warned lawmakers Monday that the draft plan lacks transparency around those major changes.

Belnap told lawmakers the plan is missing various details that are required in state law, including the need for the public to be able to compare project cost estimates year to year. He and Kerstein said the business plan is also missing an adequate funding strategy to actually complete the Bakersfield to Merced line, which could be short billions of dollars.

“My office has reviewed the draft business plan and found it falls short of complying with statutory requirements that allow the legislature to have a clear view of project conditions and be able to hold project officials accountable for those conditions,” Belnap said. “I am concerned that the authority appears to be making strategic decisions about what information it shares in annual reports.”

Belnap provided a handout to lawmakers showing the specific information required under state law that is missing from the plan.

“This is a disaster,” State Sen. Catherine Blakespear, D-San Diego, told Belnap in response. “It definitely appears deceptive; I find myself feeling really angry about that,” she said in response to the changes in project scope and lack of transparency about it in the plan.

When the rail authority board meeting started Wednesday in Sacramento, Chairman Tom Richards announced the vote on the business plan would be tabled until May.

He said the delay was “to address a large volume of public comments as well as to have the authority to continue coordinating with the administration.”

KCRA 3 tried to interview California High Speed Rail Authority CEO Ian Choudri after the meeting mainly to talk about the business plan. A spokesman for Choudri said he would only do the interview if journalists limited their questions to the business plan, prohibiting questions about Choudri’s personal matters that forced him to go on administrative leave earlier this year.

KCRA 3 would not agree to those terms and the interview did not happen.

A spokesman for the High-Speed Rail Authority said late Wednesday afternoon that the board will consider the plan on May 20th and formally send the finalized version to the California Legislature by June 1.

The spokesman said the delay will allow the authority to review the feedback its received on the plan and also align it with state budget negotiations that are finalized at the end of June between lawmakers and the governor.

See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel