SouthernWorldwide.com – City leaders across California are intensifying their pushback against the state’s high‑speed rail initiative, warning that the Golden State might tap into local tax revenues to support the ailing project that has languished for almost two decades.
In a letter sent in April to the High‑Speed Rail Authority’s chief executive, the mayors condemned a tax and planning scheme aimed at financing the railway that has been in development since 2008.
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The mayors called on the state to rely on voter‑backed bonds or dedicated state funds rather than “attempting to divert local tax growth through a legally questionable arrangement.”
The proposed funding would not create a new tax but would redirect tax revenues generated near future high‑speed rail stations to the project, according to the California High‑Speed Rail Authority’s 2026 Draft Business Plan, which re‑estimated a full Phase 1 buildout at $231.3 billion and an optimized initial Phase 1 cost of about $126.2 billion.
A spokesperson for the Authority said there is no finalized plan to capture local revenues, emphasizing that the draft plan merely explores potential tools to support station‑area infrastructure.
President Donald Trump and other administration officials have repeatedly criticized Governor Newsom and other California leaders for the massive amount of time and money poured into the venture, which was approved in 2008 with a $33 billion estimate that has since swelled to over $200 billion in anticipated costs.
“A little train from San Francisco to Los Angeles run by Governor Gavin Newsom – that’s how Trump described the project on May 6. ‘Did you ever hear of Gavin Newsom? He has that train—the worst cost overrun I’ve ever seen. It’s completely out of control,’ he said.
Dyer stressed that California law bars the state from diverting sales‑tax dollars for any purpose other than supporting local governments.
He also noted that the mayors feel blindsided, having had no meetings with High‑Speed Rail Authority staff, being excluded from discussions and still uncertain about the specifics of the proposed
