California mayors oppose state rail funding plan using local tax revenue

The letter stated the plan would redirect tax revenues near future rail stations to the project without creating a new tax. The mayors described the approach as fiscally reckless and legally vulnerable, arguing it would weaken local governments and undermine protections affirmed by voters. They urged the state to use voter-approved bonds or dedicated state revenue sources instead.

Project cost estimates The 2026 Draft Business Plan re-estimated full Phase 1 construction at $231.3 billion. An optimized initial Phase 1 investment was listed at approximately $126.2 billion. A High-Speed Rail Authority spokesperson said no finalized plan exists to capture local revenues and that the draft document continues conversations with local jurisdictions about potential tools for station-area infrastructure.

Background and prior statements The project has been underway since 2008, when voters approved it with an initial estimated cost of $33 billion. President Donald Trump stated on May 6 that the project has experienced the worst cost overrun he has seen.

Fresno Mayor Jerry Dyer said the state cannot take local sales tax dollars for purposes other than those intended to support local government. The nine other signatory mayors represent Anaheim, Lancaster, Riverside, Bakersfield, Gilroy, Merced, Burbank, Hanford and Stockton.