Mayors from several California cities are voicing strong opposition to a proposal in Governor Gavin Newsom’s 2026 Draft Business Plan for the state’s high-speed rail project. The plan suggests redirecting local tax revenues from areas near future High-Speed Rail stations to fund the project, which has faced nearly two decades of delays and cost overruns.
Local Leaders Raise Concerns
Fresno Mayor Jerry Dyer, along with mayors from Anaheim, Lancaster, Riverside, Bakersfield, Gilroy, Merced, Burbank, Hanford, and Stockton, sent a letter to the CEO of the High-Speed Rail Authority (HSRA). They argue that the proposal is fiscally reckless and legally vulnerable, warning it could destabilize local governments and undermine constitutional protections.
The mayors urged the state to consider voter-approved bonds or dedicated state revenue sources instead of diverting local tax growth. They described the plan as a “legally dubious scheme” that sets a dangerous statewide precedent.
State’s Response
A spokesperson for the California High-Speed Rail Authority countered the mayors’ claims, stating that there is no finalized plan to capture local revenues. The spokesperson emphasized that the 2026 Draft Business Plan is part of ongoing discussions with local jurisdictions and stakeholders about potential funding tools.
Despite these assurances, the mayors remain concerned about the lack of communication and clarity from HSRA officials. Mayor Dyer highlighted that local leaders have been left out of conversations and are uncertain about the specifics of the proposed tax redirection.
Historical Context and Criticism
The high-speed rail project, initially approved in 2008 with a $33 billion budget, has seen costs balloon to over $200 billion. Former President Donald Trump and other critics have frequently criticized the project for its delays and escalating costs. Representative Vince Fong described it as a “slow-moving train wreck” and a case study in government waste.
HSRA CEO Ian Choudri, speaking at a conference in Washington, D.C., assured attendees that the railway would be completed “in our lifetime.” However, skepticism remains among lawmakers and local officials who have yet to see tangible progress.
Original reporting: Fox News (HLL/CB) — read the source article.
