California High-Speed Rail Investment Contributes Billions in Economic Benefit

The California High-Speed Rail Authority (Authority) in January released its 2024 Economic Impact Analysis Report highlighting substantial benefits to the state and underscoring the project’s role in stimulating economic growth as work continues to build the nation’s first high-speed rail system.

According to Jamey Matalka, the Authority’s Chief Financial Officer: “The benefits of investing in a high-speed rail system continue to ripple through the California economy. This project is creating meaningful partnerships and jobs, lifting up disadvantaged communities and supporting greenhouse gas reduction goals.”

Ninety-nine percent of the project’s 2023-24 fiscal year expenditures have gone to California businesses and workers, with two out of every three dollars going to disadvantaged communities, driving substantial economic activity in these areas.

The Authority estimates the project has created approximately 109,000 job-years of employment, spurring more than $8 billion in total labor income earned by workers on the project and nearly $22 billion in total economic activity. A job-year is defined as the equivalent of a full-time job for one year.

The Authority estimates completing the 171-mile Merced to Bakersfield initial passenger service would, in addition to cutting existing trip times in half, add to these numbers, resulting in a total of 333,000 job-years of employment and total economic activity of $70.3 billion.

Estimates show the complete build-out of the 494-mile Phase 1 System between San Francisco to Los Angeles/Anaheim, via the underway Central Valley section, would cumulatively create a total of 1,034,000 job-years of employment, and total economic activity of $221.8 billion.

The Authority’s economic impact analysis is updated annually and reflects data as of June 2024.

An updated webpage featuring the latest 2024 Economic Impact Analysis can be found here. A related factsheet can be found here, and information on project construction progress can be found at: www.buildhsr.com.

Construction progresses every day on the California high-speed rail project. There are currently 171 miles under design and construction from Merced to Bakersfield. More than 60 miles of guideway is completed and, of the 93 structures needed, 50 are complete and more than 25 are under construction between Madera, Fresno, Kings, Tulare and Kern counties.

Earlier in January, the Authority announced the beginning of its railhead project in Kern County. Construction of the railhead is a major step in the track and systems process and signifies the next phase of the high-speed rail program. It includes the installation of temporary freight tracks that will help transport materials needed to build the future electrified, high-speed rail tracks. The railhead project is possible due to the completion of Construction Package 4, which is comprised of 22 miles and 11 structures.

Since the start of high-speed rail construction, the project has created more than 14,500 construction jobs, mostly going to Central Valley residents.

The Authority has full environmental clearance on 463 miles of the high-speed rail program from the Bay Area to downtown Los Angeles. Plans for high-speed rail construction in the northern and southern sections include tunneled sections.