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California High‑Speed Rail Board Approves $3.5 Billion Track Contract as Steve Kawa Becomes Chair

Opening Central Valley construction, the decision also draws scrutiny over procurement transparency, cost shortfalls and local financing disputes.

Overview

  • The board voted unanimously to adopt the authority’s 2026 business plan and to authorize CEO Ian Choudri to sign a track-and-systems contract with a Kiewit/Stacy Witbeck/Herzog joint venture not to exceed $3.5 billion.
  • The procurement produced two proposals but staff deemed one bidder nonresponsive because it did not list a California‑licensed engineer in a required role, and the losing bidder’s price was never opened.
  • Authority officials said the contract clears the way for track-laying to begin in 2026 and for infrastructure commitments by the end of 2029, while passenger service is now expected no earlier than 2032–2033.
  • Critics and some board members warned the vote effectively leaves the project with a de facto single bidder, highlighted large funding gaps in the plan and urged more local coordination and legislative oversight.
  • The action formalizes a scaled-back plan that pegs the Central Valley segment at roughly $34.8 billion and Phase 1 at about $126 billion, a financing picture that staff say leaves a multi‑billion dollar shortfall and could require new public‑private partnerships or state action.