Governor Gavin Newsom signed Assembly Bill 377 on Wednesday, mandating the California High-Speed Rail Authority to devise a comprehensive funding plan for the high-speed rail project segment from Merced to Bakersfield. The bill requires the Authority to update cost estimates, risk assessments, and service initiation options in its 2026 business plan. This legislation comes as the project faces a $7 billion funding gap and a lawsuit against the Trump administration for withdrawing $4 billion in federal funding.
