California High-Speed Rail Commission Approves Funding and Leadership Changes
The California High-Speed Rail Commission gave the green light on Monday to a contentious business strategy and contracts valued at up to $3.5 billion. This decision comes after Steve Kawa, a long-time advisor to Governor Gavin Newsom, was appointed as the head of the authority overseeing the bullet train initiative, which has been plagued with controversy.
With the approval of a construction contract for the track and associated systems, railroad construction can finally commence. The project, which is multi-phased and expected to cost $3.5 billion, will focus on laying track and installing electrical systems across the Central Valley. A joint venture comprising Kiewit, Stacy Witbeck, and Herzog will be taking on this work.
Mr. Kawa, who was Newsom’s chief of staff during his time as mayor of San Francisco, steps into the role at a critical moment for the long-delayed bullet train project. Absent any changes to the current plans, the estimated cost of the project was set to soar to an alarming $231 billion.
Despite facing opposition from local officials, the commission managed to move forward with the 2026 business plan. The initial segment in the Central Valley carries an expected cost of $34.8 billion, while the broader Phase 1 system is projected at $126 billion.
In a smooth meeting, Kawa took over the leadership role and expressed gratitude to Newsom for his appointment, previously held by Tom Richards. “I’ve worked with the governor since the 1990s,” Kawa noted. “We both believe in the significance of high-speed rail and its potential benefits for California’s future.”
However, some board members voiced concerns. Jeffrey Wirth questioned the wisdom of locking in a substantial agreement with one bidder for a project that has already seen its fair share of delays and cost inflation. “We were informed last month that only one company could bid for this project,” he said, expressing his worries about whether that was a prudent use of taxpayer dollars.
Officials clarified that only two bids were received during the competitive procurement, and they deemed the winning bid aligned with internal cost estimates. Nevertheless, they admitted that they did not open the proposals from the other bidders because one did not meet the required criteria for a California-licensed engineer in a key role.
The new agreement also empowers the authority’s CEO, Ian Chowdhury, to finalize agreements with joint ventures up to $3.5 billion.
Monday’s gathering highlighted existing tensions regarding the 2026 business plan, which has already faced scrutiny due to rising costs and questions about its legal compliance. Some officials, like Jay Schlosser, executive director of the Kern Council of Governments, urged for a delay in approval, pointing out that local officials needed more time to assess the considerable changes proposed.
“The communication leading up to the release of this document was not sufficient,” Schlosser remarked, noting the longstanding collaboration with the agency that had now been disrupted by significant personnel changes.
State Senator Tony Strickland criticized the commission’s decision to push ahead, stating, “Cosmetic changes won’t alter the trajectory of high-speed failure that began with over-promises and under-delivering,” and he urged colleagues to redirect funds to projects that would yield tangible results for communities.
Despite opposition, the board voted to forward the plan. Officials stated that the contract is crucial for beginning track-laying work in 2026, with infrastructure expected to be completed by the end of 2029.
Representative Kate Sanchez voiced skepticism on social media about the future of high-speed rail under Kawa’s leadership, posing, “Will this finally get the trains built, or are we simply upgrading the management of the world’s most expensive group project?”
