California city leaders are stepping up their opposition to the state’s high-speed rail project. Concerns are growing that local taxpayer money could be used to support a project that has faced delays for almost two decades.
Mayors Warn Against Using Local Taxes
In a letter to the CEO of the California High-Speed Rail Authority (HSRA), Fresno Mayor Jerry Dyer and nine other mayors described the proposed plan as “fiscally reckless, legally vulnerable, and fundamentally unfair.” They argue that diverting local tax revenues to fund the rail project would weaken city budgets, destabilize public services, and break constitutional protections.
The mayors urged the state to consider voter-approved bonds or dedicated state revenue instead of taking local tax funds. The letter emphasizes that using local tax growth for the rail system is both unfair to communities and legally questionable.
High-Speed Rail Costs and Funding
The high-speed rail project, first approved in 2008, has seen costs rise dramatically. The initial estimate of $33 billion has ballooned to over $200 billion.
The 2026 Draft Business Plan from the HSRA outlines that a full Phase 1 buildout would now cost $231.3 billion. A more “optimized” approach would reduce initial Phase 1 spending to about $126.2 billion.
The proposed funding does not involve creating a new tax. Instead, it would redirect tax revenue from areas near future rail stations to the project.
However, local officials have expressed frustration at being left out of discussions. Many mayors say they have not met with HSRA officials and remain unclear on the specifics of how funds would be used.
State Pushback and Criticism
A spokesperson from HSRA denied that there is a finalized plan to take local revenues. They said the 2026 Draft Business Plan is only meant to explore tools that could support station-area infrastructure and the long-term delivery of the rail system.
Meanwhile, critics including President Donald Trump have repeatedly criticized California leaders for the project’s delays and rising costs. Trump has called it “the worst cost overrun I’ve ever seen” and described the project as “totally out of control.”
Fresno Mayor Dyer also stressed that state law does not allow local sales tax dollars to be diverted from their intended purpose, which is to support local governments.
Cities Unite Against the Plan
The nine other mayors who signed the letter represent the cities of Anaheim, Lancaster, Riverside, Bakersfield, Gilroy, Merced, Burbank, Hanford, and Stockton. They called the plan a “legally dubious scheme” and warned that it could set a dangerous precedent for the state.
Lawmakers and local officials have criticized the project for failing to deliver results despite billions of dollars spent. Representative Vince Fong described it as a “slow-moving train wreck” with broken promises and no completed track.
HSRA CEO Ian Choudri, however, remains optimistic. Speaking at a conference in Washington, D.C., he said the railway will be completed “in our lifetime.”
California’s high-speed rail project faces a difficult path ahead. With costs soaring and nearly two decades of delays, local officials are demanding transparency and legal clarity before any taxpayer money is redirected.
The debate highlights tensions between state ambitions and local financial responsibility, raising serious questions about governance, accountability, and the future of the rail project.
