CA’s high-speed rail plan draws pushback over costs, taxes and Merced station. What to know
California’s High-Speed Rail Authority released its draft 2026 business plan with a strategy to cut $2 billion from its Central Valley route, but the proposal has sparked concerns from local officials and state analysts alike. A 60-day public comment period is open through April 29 for residents to weigh in.
Here are key takeaways:
• The rail authority says it can reduce the Central Valley route’s estimated cost from $36.75 billion to $34.76 billion. The California Legislative Analyst’s Office, in an analysis of the rail authority’s previous August report, says the agency’s cost estimates make “assumptions that might not be realistic.”
• The authority wants state legislation granting it control over zoning and the ability to capture sales and property tax revenue within a half-mile of its stations. Merced Mayor Matthew Serratto said the idea is “not going to get very far,” and the League of California Cities called it an unconstitutional diversion of tax dollars.
• A proposed shift of Merced’s station from downtown to a Southeast Merced site could save $1 billion and cut two to three years off construction, according to the authority. The City Council voted 5-2 to gather more information before deciding.
• The authority’s board approved a potential $537.3 million settlement change order with contractor Dragados Flatiron — more than double the largest previous change order on that contract. The authority says its calculation of potential cost reductions took that change order into consideration.
• Federal support dropped sharply after the Trump administration rescinded $4.1 billion in previously awarded funding, leaving federal contributions at less than 10% of total available funding.
• Comments can be submitted through the Draft 2026 Business Plan Comment Form online or by emailing BusinessPlan2026@hsr.ca.gov before the April 29 deadline.
The summary points above were compiled with the help of AI tools and edited by journalists. The source reporting referenced above was written and edited entirely by journalists.
