California high-speed rail could run out of money by December 2027, as authority cuts train order in half
Summary
California’s high-speed rail project may run out of money by December 2027 unless it borrows billions to continue. The rail authority has cut its train order in half and delayed buying trains, risking federal funding and increasing costs.Key Facts
- The rail project could run out of funding by December 2027 without new financing.
- The project faces a $9.5 billion funding gap over five years.
- Borrowing to cover this gap could cost an extra $3.6 billion to $6.6 billion in interest.
- The authority cut the train order from six trainsets to three, with options for 19 more but no guarantees.
- The deadline to buy trains has been delayed to February 2030.
- The authority may use a lease-purchase plan instead of outright buying the trains.
- Federal "Buy America" rules, which require trains to be made in the U.S., were removed from the initial train order.
- The rail authority missed deadlines tied to $4 billion in federal funding and dropped its lawsuit against the previous administration.
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