California high-speed rail faces $2.2 billion shortfall, Inspector General warns

In a letter reviewing the 2026 Business Plan, Inspector General Benjamin Belgrid Belnap accused the California High-Speed Rail Authority of obscuring basic project facts, hindering legislative oversight. His report identifies a substantial financing gap over the next five fiscal years, with an urgent need for $2.2 billion in the 2027-28 budget to maintain construction on the Merced-to-Bakersfield stretch. The agency has already spent more than $5.7 billion on delay and change-order fees, including a $537 million payment to a single contractor in February.

Republican assembly member David Tangipa recalled the project began when he was a child and sees little progress, while Rep. Kevin Kiley labeled it the worst public-infrastructure failure in U.S. history, noting the cessation of federal funding. Cost projections for the 171-mile central segment have risen to $35.7-$36 billion, surpassing the original $33.5 billion bond estimate for the entire Phase 1 network.