For California High-Speed 2025 was a year of contrasts. In review, 2025 featured:

• The slog and grind of routine civil works construction,
• A setback with the canceling of significant Federal Grants critical to completing the Merced to Bakersfield segment.
• Success with the assurance of a guaranteed yearly appropriation of Cap & Trade funds through 2045 ($20 Billion). This long-term state funding assures the completion of the Merced – Bakersfield segment and back-stops future private investment,
• And a surprise when the authority walked away from the withheld Federal Grants despite winning round-one of the court cases.

Moving into 2026 there will be several key benchmarks that will clearly move the project forward. Civil works will be in the “homestretch” during 2026. The railhead storage yard near Wasco for the marshalling of track construction commodities – rail, ties, ballast, catenary poles, etc. – is completed and receiving deliveries. By the time you read this all-non-railroad property required for the project will have been acquired. Due to inaccurate utility maps additional small pieces of property have had to be acquired late in the utility relocation process to accommodate the relocation. The last of the utility relocations will be completed by the summer of 2026.

By the summer of 2026 83% percent of the highway overpasses and underpasses should be completed with construction of the remainder well underway. Also, by the summer 85% of the guideway will have been completed with the remainder underway. The goal for civil work is completion of guideway by the Fall of 2026 so that track construction can begin. The other civil work that will continue, paving overpasses, landscaping underpasses, etc. is programmed not impede track construction. Finally, all the intensive route level environmental studies, San Francisco to Anaheim, will be completed.

The key 2026 milestones will be:

• First Quarter 2026, conclusion of trainset bid evaluation.
• Second Quarter 2026, Request for Interest in a private/public project for solar and battery storage facilities for train and facilities power.
• June 2026, Track and Systems award for track and overhead catenary construction.
• June 2026, Award for a Co-Development Private Sector Partner.
• Third Quarter, Merced and Bakersfield extensions Design/Build contract for the final detailed design portion and construction awarded.
• Fourth Quarter, Award of the Design-Build contract for the Fresno Station concourse and platforms. The former Southern Pacific Station, currently being refurbished, will be the city side entrance and gateway to the new facility.
• Fourth Quarter, Procurement of Design-Build for the Operations Control Center, and Central trainset Maintenance Facility.
• Fourth Quarter, Request for Interest for the Pacheco Pass and Tehachapi Tunnels.
• Fourth Quarter, Construction begins for the Fresno Railhead to receive track construction commodities.
• Fourth Quarter, Detailed Track and System Design for CP-4 Shafter north (21 miles) completed and track sub-grade finishing and site preparation work begins.

2026 will also mark the implementation of the strategic pivot of the project, enabled by the yearly guaranteed appropriation, looking beyond just the Merced – Bakersfield Interim Operation Segment to focusing on partnering with the private sector in extending high-speed service from Chowchilla to Gilroy and Bakersfield to Palmdale. This will enable the high-speed rail to reach the largest population centers of the state with the concurrent substantial increase in ridership and ticket revenues.

Also, in 2026 the California High-Spead Rail Authority will be working with the California State Legislature for changes to streamline project requirements resulting in lower costs and an expediated project timeline. Those changes should make partnerships with the private sector more attractive. Some of these legislative changes sought are:

• Streamlining and time-limits for local municipal construction permits and utility relocation agreements.
• Exemption of solar and battery storage facilities on Authority owned land from the California Environmental Quality Act.
• State sales tax exemption for commodities purchased by the Authority.
• Allowing the Authority greater land use flexibility and the ability to utilize value-capture mechanisms.
• Encroachment permitting authority.
• Develop procedures within California State Courts to create a level of expertise among a select group of key judges who become experts in eminent domain right-of-way cases.