The California State Senate's Budget and Fiscal Review Subcommittee No. 2 convened on May 21, 2025, to discuss the ongoing challenges and progress of the high-speed rail project connecting San Francisco to Los Angeles. Key discussions centered on funding, project completion timelines, and private sector engagement.

During the meeting, officials acknowledged the difficulties faced by the project since its inception. However, they reported significant progress, stating that 99% of the necessary land parcels have been acquired and that 96 of the planned 119 miles of guideway have been completed. The project is now moving forward with construction into Merced and Bakersfield.

A major point of concern was the recent withdrawal of federal funding for the high-speed rail initiative. In response, state officials emphasized their reliance on cap-and-trade proceeds, projecting that the administration's proposal of $15 billion through 2045 would suffice to continue construction and cover operational costs. They expressed confidence in delivering the Merced to Bakersfield segment, despite the loss of federal support.

The subcommittee also highlighted the importance of private sector involvement. An industry forum held earlier in the year attracted interest from major financiers and concessionaires, indicating a potential for renewed investment in the project. Officials are preparing to issue a Request for Expressions of Interest (RFEI) to gauge further private sector engagement.

Looking ahead, officials anticipate that train service could begin between 2030 and 2033, contingent on the successful continuation of funding and construction efforts. They remain optimistic about meeting compliance requirements to retain federal funds, which currently constitute 27% of the project's financing.

Overall, the meeting underscored the ongoing commitment to the high-speed rail project, despite financial hurdles and the need for strategic partnerships to ensure its completion.