California HSR 2025: $507M track materials tender, 2039 complete goal

The California High-Speed Rail Authority (CHSRA) unveils its "Bay to Basin" strategy with three development scenarios and launches a major $507 million procurement for 191 km of Central Valley track equipment, targeting 2026 tracklaying start.

Updated on September 4, 2025

California's high-speed rail project reaches a decisive new milestone with the August 22 publication of a strategic update detailing a "clear path forward to 2039" to connect northern and southern California via the Central Valley. This roadmap accompanies a record procurement to accelerate the tracklaying phase.

Key takeaways

• Three development scenarios through 2039 presented
• $507M procurement for rails, ties, and electrification
• 191 km of Central Valley covered in first phase
• "Buy America" requirement for all materials
• Tracklaying start planned for 2026 despite skepticism
• Seeking Public-Private Partnership (PPP) opportunities

Three scenarios for the "Bay to Basin" vision

CHSRA has defined three progressive deployment strategies, each addressing distinct financial and operational objectives to achieve statewide connectivity.

Scenario 1: Merced – Bakersfield (mandatory segment)

This first scenario focuses on completing the 275 km currently under design and active construction in the Central Valley. CHSRA is "statutorily obligated to prioritize delivery" of this segment unless directed otherwise by the state legislature.

The primary objective targets improved regional rail services in this strategic agricultural zone, creating the technical foundations for future extensions.

Scenario 2: San Francisco – Gilroy – Bakersfield (early profitability)

This option prioritizes a "cost-effective way to achieve profitable commercial operations at the earliest possible opportunity with less additional funding needed."

The project would involve building high-speed rail infrastructure from the Central Valley to Gilroy while enhancing the Gilroy – San Jose rail corridor for through services to San Francisco. This configuration should "attract substantial ridership and generate positive net proceeds," creating significant opportunities for private sector engagement through a PPP model.

Scenario 3: San Francisco – Gilroy – Palmdale (statewide service)

The most ambitious scenario envisions an extended connection from Gilroy to Palmdale, linking with LA Metrolink commuter trains at Palmdale and potentially with the proposed Brightline West service to Las Vegas and Rancho Cucamonga.

This configuration would provide "statewide rail service to a majority of Californians" and promises the "highest return on investment for the state." CHSRA notes that while obligated to prioritize Merced-Bakersfield, the Gilroy-Palmdale option offers the best ROI, while Gilroy-Bakersfield enables the earliest profitable operations.

$507 million to equip the Central Valley

The California authority is "ramping up efforts to start tracklaying on the sections of alignment now nearing completion." On August 28, it announced the launch of procurement for track and railway systems for 191 km of the Initial Operating Segment (IOS) in the Central Valley.

Major procurement details

Six separate notices will be issued for different lots, covering all necessary equipment:

• Rails and ties meeting high-speed standards
• Overhead electrification masts and catenary
• Fiber optic cabling for signaling systems
• Specialized ballast for high-speed rail infrastructure

The total approved value reaches $507 million, spread over multiple anticipated contract awards. Delivery lead times range from six to twelve months depending on materials.

In compliance with federal regulations, all materials must be "newly manufactured goods and compliant with the Buy America and the Build America, Buy America Act."

Context & challenges

This acceleration comes amid intense political pressure. The lack of tracklaying has been cited by figures close to the Trump administration, such as Federal Transportation Secretary Sean Duffy, as "evidence of the failure of the Californian project."

CHSRA's push to begin tracklaying in 2026 is "widely seen as a response to these attacks." CEO Ian Choudri states this procurement "will not only accelerate construction... but by purchasing directly from American manufacturers, we will deliver significant savings to the state."

The project, initially estimated at $33 billion in 2008, faces considerable funding challenges after previous Trump administration defunding attempts.

What changes for Californians

These developments mark a crucial transition from the civil engineering phase to railway systems installation. For California's 40 million residents, this represents tangible progress toward a decarbonized transportation system between major metropolitan areas.

The preferred San Francisco – Gilroy – Palmdale scenario would serve approximately 80% of the state's population, with estimated travel times of 2h40 between San Francisco and Los Angeles versus 6 hours by car during peak hours.

Expected economic benefits include creating 700,000 jobs over the project duration and an annual reduction of 12.7 million tons of CO2 at full operation.

Technical challenges and tight schedule

Despite the optimism displayed, rail industry specialists express "surprise" at the speed of the planned procurement, noting that only one North American supplier might be able to meet the technical conditions for turnouts.

Delays in the design phase also raise questions. Industry sources report that a contract with Systra to design track and overhead electrification systems was only awarded in June 2025 [to be verified]. This design stage could last up to two years for a ballasted track system, fueling "skepticism about the potential for tracklaying to begin in 2026."

Funding and private partnerships

CHSRA actively seeks to "provide certainty to potential Public-Private Partnership investors" in the project. This strategy aims to complement federal and state public funding with private capital, particularly attractive on segments with high anticipated profitability.

The objective is to achieve "commercial success at the earliest possible stage," with a plan "contingent on sufficient, long-term funding."