The Sacramento Bee has reported that the Legislature’s budget proposal for the high-speed rail project has been finalized. Gov. Jerry Brown and Democratic lawmakers have agreed to use 25 percent of future cap-and-trade funds, totaling $250 million, to continue construction of the $68 billion California High-Speed Rail Project (the “Project”). The floor votes for the budget will occur on Sunday.
This is welcome news for the High Speed Rail Authority (the “Authority”), which has recently faced several obstacles to secure funding for the Project. The Authority is battling numerous lawsuits, particularly one that has blocked voter-approved state bonds, totaling $9.9 billion. In addition, this week the U.S. House of Representatives voted to stop directing funds to support the Project from the $52 billion federal transportation bill. The Authority has not yet secured any private funding for the Project.
Click here for the Sacramento Bee article.