California High Speed Rail Project between Merced and Bakersfield

suspended

The high-speed rail project between Merced and Bakersfield in California is facing suspension due to a projected funding gap of $2025 billion for 2026-14. Inflation and the withdrawal of $4 billion in federal subsidies have led to a sharp budget reduction, casting doubt on the execution of critical project milestones. The state had launched a tender for the purchase of six high-speed trains in 2023, with Siemens and Alstom participating, but the procurement process has been temporarily suspended. The project was intended as a pilot segment for California's future HSR network, connecting the state's central region with the south and providing a basis for further expansion. The state government is seeking alternative investment sources and hopes for the return of federal funding or private investment.