$128 Billion Rail Project: What Happened?

Man in suit, solemn expression, purple background with bear drawing.

California’s bloated high-speed rail boondoggle has pivoted yet again, this time abandoning downtown Merced for a rural pistachio field while marketing it as a “gateway to Yosemite”—a move critics slam as taxpayer-funded gaslighting after voters approved an entirely different project nearly two decades ago.

Story Snapshot

Rail Authority proposes moving Merced station 4 miles southeast to rural site, saving $1 billion but abandoning voter-approved downtown location
Station rebranded “Merced-Yosemite” despite being nowhere near the park, relying on unproven bus shuttles to bridge 80-mile gap
Project costs exploded from $33 billion in 2008 to projected $128 billion systemwide, with Trump administration revoking $4 billion in federal funding
Critics call plan “gaslighting” as it deviates from original promises while Newsom seeks $1 billion annually through 2045 from Cap-and-Trade funds

Billion-Dollar Bait-and-Switch Sparks Outrage

The California High-Speed Rail Authority presented its latest scheme to Merced City Council on January 12, 2026, proposing to relocate the planned station from downtown to a remote southeastern location near Campus Parkway and State Route 99. Authority Chief of External Affairs Peter Whippy pitched the move as providing “a clear, fundable path,” claiming it would save $1 billion by avoiding elevated track construction and business demolitions in the city center. The rural site sits adjacent to pistachio orchards and an abandoned warehouse—a far cry from the urban transit hub voters endorsed in 2008 when they approved the original $33 billion project.

Yosemite Marketing Masks Urban Abandonment

Rail officials are marketing the relocated station as “Merced-Yosemite,” capitalizing on the national park’s proximity via State Route 140. The Authority promises bus shuttles will transport visitors from the station to Yosemite, roughly 80 miles away, positioning the project as a car-free tourism option. Merced Mayor Matthew Serratto embraced the rebranding strategy, stating officials should actively market it as the Merced-Yosemite station. However, urban planning experts like Tom Radulovich of Livable City reject the rural location, arguing it abandons downtown ridership potential and promotes sprawl—the opposite of sound transit policy that conservatives value for fiscal responsibility and private property rights.

Project’s Troubled History Fuels Skepticism

This latest pivot follows years of broken promises and cost overruns that epitomize government mismanagement. Approved by voters in 2008 for $33 billion to connect San Francisco to Anaheim across 800 miles, the project now faces a staggering $128 billion systemwide price tag with completion dates perpetually pushed back. The Trump administration revoked $4 billion in federal funding in 2025, forcing California to rely entirely on state sources. Governor Newsom and the Legislature reauthorized the Cap-and-Trade Program in July 2025, committing $1 billion annually through 2045—money that could address genuine infrastructure needs rather than subsidizing a white elephant that violates its founding commitments.

Local Leaders Caught Between Savings and Betrayal

Merced Deputy City Manager Frank Quintero expressed frustration after an August 2025 Authority report suggested bypassing Merced entirely, stating officials felt “blindsided” by the proposal. The current rural station plan requires amending a 2022 state law that restricts spending outside the Merced-Bakersfield corridor, adding legislative hurdles to an already troubled timeline. Merced County Supervisor Josh Pedrozo acknowledged rural development risks but noted potential regional tourism benefits. Critics correctly identify this as gaslighting: promising voters an urban transit network, then delivering isolated stations in farm fields while demanding billions more in taxpayer funding—classic government overreach that betrays public trust.

California High-Speed Rail chiefs pitch train to Yosemite – but plan mocked as ‘gaslighting’ https://t.co/zJog42CqES pic.twitter.com/Z2FmBOFZrH

— New York Post (@nypost) February 11, 2026

Construction continues on the 171-mile Merced-to-Bakersfield segment, with 60 structures at 63 percent completion and 80 of 119 miles reportedly rail-ready by early 2026. The Authority targets a $3.5 billion track contract award by June 2026, aiming for segment completion between 2030 and 2033. Yet these milestones ring hollow when measured against the project’s original scope and budget. What began as a fiscally reasonable voter initiative has metastasized into a generational debt burden, now dependent on California’s Cap-and-Trade slush fund while abandoning the very communities that supported it—a cautionary tale of progressive central planning run amok.