Newsom proposes $4.2 billion for high-speed rail

Reading Time: 2 minutes

High-speed rail could see influx of funding under Gov. Newsom’s proposal

California Gov. Gavin Newsom proposed $4.2 billion toward the construction of a high-speed rail, which would connect the area’s mega-regions from Los Angeles to San Francisco, during the state’s budget briefing on Friday.

The funds were a significant part of an $11 billion transportation proposal and are intended to help complete construction on the first portion of the rail system in California’s Central Valley, along with advancing the service between Merced and Bakersfield.

The long-discussed high-speed rail has 119 miles currently under construction, with more than 35 active construction sites, according to the California High Speed Rail Authority (CAHSRA).

Newsom, who touted the project as an effort to “build a modernized transportation system for the next century,” said during the budget briefing that he also expects federal funding to resume under President Joe Biden’s administration. The Trump administration and then-Republican-controlled congress had set out to end federal funding for the rail.

“Those dollars are coming back into the state, reinforcing we have a real federal partner,” Newsom said.

The $11 billion toward transportation represented more than a third of Newsom’s $18 billion total proposed budget and included $1 billion for projects critical to supporting the 2028 Olympic Games in Los Angeles, $1 billion toward statewide transit and rail projects, $500 million for increasing the safety and ease of walking and biking, $500 million for critical safety improvements, and $2 billion to support the State Highway Operation and Protection Program, Interregional Transportation Improvement Program, and local bridges and roads maintenance.

The rail, which will be capable of traveling more than 200 miles per hour while running on 100% renewable power, has also created more than 5,500 construction jobs, according to the CAHSRA.

“Most of these workers are from the Central Valley, which means they can work and live in the same area and spend their wages on businesses in the community further spurring job growth,” CAHSRA CFO Brian Annis told FOX Business. “Beyond the Valley, high-speed rail will tie the regions of the state together from the Bay Area to Los Angeles, providing new opportunities for the entire state.”

California’s state legislature now has until June 15 to send Gov. Newsom a budget bill before the fiscal year begins on July 1.

Recommended for you

Growing for Good

Amidst a period of vigorous growth, American Pacific Mortgage is leveraging technology to streamline the mortgage process for everyone involved

The Squeaky Wheel Saves the Planet

It might sound odd, but the biggest thing you can do to make the world a better place is complain. That advice from EARTHDAY.ORG president Kathleen Rogers might come as welcome to those of us who are particularly skilled at complaining.

Everything In Its Right Place

The future of the office is in flux. If companies want people coming back to the office, they have to offer a place worth coming back to, says Keystone president and COO Rich Gottlieb.

Secrets of the Ancients

Some of the aqueducts the Romans built carry water to cities to this day. They perfected the arch as an architectural marvel, and the concrete they made has proved extremely durable. It’s only recently that researchers discovered the secret behind that famous Roman concrete.

5 Ways to Cut Costs as a Small Business Owner

Let’s take a look at a few effective cost-cutting measures, so you can achieve success and breathe a bit easier about the financial state of your brand.

Best Way to Avoid Capital Gains Tax On Real Estate

Capital gains tax is a levy on the profit earned from selling an asset, including real estate. If you plan to sell a property that has increased in value since you bought it, you may be subject to a hefty tax bill.

Investor David Munoz on Recession, Inflation, and Tokenization

With the worst of the COVID-19 pandemic in the rearview mirror, financial experts like David Munoz are assessing the damage the worldwide health crisis inflicted upon the economy

Wayne von Borstel: Will Money Make Me Happier?

Forbes author and financial planning guru Wayne von Borstel takes a different approach to money management than other wealth-building mentors.

Gary McGaghey on Private Equity Trends in Fiscal Year 2023

Private equity trends are almost always undulating, adjusting, and acclimating with the times. Investors will look for opportunities with the best potential return value while outweighing predicted risks.

Starting a Real Estate Investment Business

Real estate investment is a growing industry. But despite its growth, many people are confused by real estate investing, how it can benefit them and how to get involved with it.