Full Breakdown
California High-Speed Rail Moves to Track-Installation Phase with $3.5 B Contract
6/3/2026, 9:18:04 PM
Transition to Track-Installation
The California High-Speed Rail Authority (CHSRA) awarded a $3.5 billion Track-and-Systems Construction Contract to a joint venture of Kiewit, Stacey Witbeck and Herzog. The contract covers 119 miles of the Central Valley segment between Merced and Bakersfield and marks the program’s shift from civil-construction of guideways to the installation of rail, overhead electrification, train-control and communications systems.
Background & Context
Voters approved a $9.95 billion bond in 2008 for a San Francisco-to-Los Angeles high-speed line projected at $45 billion. Subsequent estimates have ranged from $231 billion (New York Post) to a revised low-end cost of $34.76 billion for the Central Valley “starter” section. In June 2024 the board adopted a 2026 Business Plan that “right-sizes” the initial delivery, focusing on the 171-mile Merced-to-Bakersfield corridor and deferring the full system.
Key Players
- CHSRA CEO: Ian Choudri, who frames the contract as the program’s transformation point.
- Board Chair: Steve Kawa, a former chief of staff to Governor Gavin Newsom, newly appointed in 2024.
- Joint-Venture Contractors: Kiewit (major U.S. construction firm), Stacey Witbeck (California rail-construction specialist), Herzog (Missouri-based rail and transit company).
- Board Members Raising Concerns: Jason Elliott, Leti Valencia (Faith in the Valley), Jeffrey Worthe.
Timeline of Recent Milestones
- Nov. 2023 (approx.): Request for proposals launched for the track-and-systems contract.
- June 1, 2024: Board vote approves the joint-venture contract and adopts the 2026 Business Plan.
- Nov. 30, 2024: Planned start of track work on the first 22 miles (Shafter to Tulare-Kern line).
- 2026: Target for completing the initial 119-mile track installation.
- 2033: Projected start of passenger service on the Merced-Bakersfield segment.
Project Scope & Numbers
- Contract Value: Up to $3.5 billion.
- Track Length: 119 miles (part of a 171-mile Central Valley alignment).
- Current Construction: >80 miles of guideway, 60 major structures completed, 30 under construction.
- Funding Gap: Board members cite an $86.8 billion shortfall for the full system; media reports reference a $90 billion gap.
- Economic Impact: ~19,200 jobs, $25 billion in statewide economic activity, 25 % small-business participation target (including 3 % micro-business and 3 % disabled-veteran goals).
Official Statements & Responses
CHSRA officials emphasized that the contract “accelerates the transition to an operating railway” and that long-lead materials have already been procured to avoid schedule delays. The board’s 2026 Business Plan was presented as a cost-saving measure, projecting up to a 46 % reduction versus the 2024 plan and relying on annual $1 billion cap-and-trade allocations. The authority highlighted the phased structure, allowing work to begin as each civil segment is handed over.
Criticism & Opposition
Board member Jason Elliott warned that the plan leaves the project $86.8 billion short, demanding extensive private-sector partnership. Leti Valencia criticized the plan’s reduced Central Valley scope and the lack of detail on land-use, battery-storage and data-center proposals. Jeffrey Worthe questioned the prudence of relying on a single bidder for the $3.5 billion contract. Community groups also objected to proposed revenue-generation facilities, citing safety and water-use concerns.
Conflicting Reports & Gaps
- Funding Gap: Reported as $86.8 billion (board member) versus $90 billion (media).
- Cost Estimates: Original $45 billion estimate versus $231 billion (New York Post) and the current $34.76 billion low-end figure for the Central Valley segment.
- Bid Competition: Only the joint venture submitted a compliant bid; a second bidder was disqualified for lacking a registered professional engineer.
Verbatim Quotes
- “Bringing on board the team that will build California’s high-speed rail track and systems marks the moment this program transforms from major civil construction into delivering an operating railway,” — Ian Choudri, CEO, CHSRA
- “I am so pleased that this board, first time chairing it, passed both items unanimously. I think it's showing that we are working together on behalf of the people of California to once again make sure high speed rail is a reality.” — Steve Kawa, Board Chair
- “By my own math, $86.8 billion dollars short of where we need to go and that's going to require partnership by every definition,” — Jason Elliott, Board Member
- “The plan proposes several significant changes to the high-speed rail project, particularly decreasing the scope of the project in the central valley hidden in its technical appendices of the plan," she said.” — Leti Valencia, Director, Faith in the Valley
- “Board member Jeffrey Worthe said during the meeting he was concerned whether “locking ourselves” into a single bidder is a responsible use of taxpayer dollars.” — Jeffrey Worthe, Board Member
What’s Next
Track installation is slated to begin later this year, proceeding in nine board-approved packages. The authority will evaluate a heavy-maintenance facility site in Fresno or Hanford and will present updated funding plans to the state legislature biennially. Successful completion of the Central Valley segment is positioned as the prerequisite for extending service toward the Bay Area and Southern California.
