California High-Speed Rail Could Run Out of Cash by Dec. 2027

California's high-speed rail project could run out of money as soon as December 2027 unless the state borrows billions more, according to a review by the project's inspector general, Ben Belnap.

Belnap's office found the High-Speed Rail Authority faces a $9.5 billion funding gap over the next five years and "will exhaust its current funding resources as soon as December 2027 if it does not secure financing." Borrowing to close that gap could add $3.6 billion to $6.6 billion in interest costs that are not included in the project's official cost estimate.

The warning follows revelations that the authority repeatedly missed deadlines to purchase the trains at the center of a $4 billion federal funding dispute — deadlines written into its federal grant agreement and promised to a federal judge — before quietly dropping its lawsuit against the Trump administration.

In an Aug. 6 procurement notice, the authority confirmed no contract has been signed for the trains and disclosed major changes to the deal: the order was cut from six trainsets to three, with options for 19 more carrying "no guarantee." Delivery is now required by February 2030, and the authority is considering a lease-purchase arrangement rather than buying the trains outright. The notice also drops federal "Buy America" requirements that generally mandate trains be assembled in the U.S. from domestic components.

The authority said it modified the contract after the withdrawal of a federal grant, to "maintain the project schedule" and reduce "schedule risk."

Leaders of both legislative transportation committees said they were unaware of the reasons behind the missed deadlines. "I am concerned," said Assembly Transportation Committee Chair Lori Wilson, a Democrat. Senate counterpart Dave Cortese, also a Democrat, called it "a concern" his committee would keep investigating. Republican Sen. Tony Strickland said, "We wasted billions of dollars" and called for more oversight.

Belnap's review also found the authority's 2026 business plan failed to clearly disclose that the project's completion window has slipped from 2032–2033 to as late as September 2034, concluding the authority "obscured basic facts about the project." The authority disputed the findings as differences in interpretation; the inspector general's office stood by its conclusions.

Gov. Gavin Newsom did not respond to requests for comment. The train contract's award date remains, in the state's words, "to be determined."