A Billion Dollars is Better Spent on Much Needed State Services than High-Speed Rail
Jun 11, 2025 08:49AM ● By Assemblywoman Alexandra Macedo News Release
Under the Governor’s revised budget proposal, the High-Speed Rail Authority will get a guaranteed floor of $1 billion off the top of the cap-and-trade revenue, up to a maximum of 25%. Photo courtesy of California High Speed Rail Authority
SACRAMENTO, CA (MPG) - Facing a $12 billion deficit, Governor Gavin Newsom released his $322 billion revised spending plan on May 14, 2025.
Assemblywoman Alexandra M. Macedo (R-Tulare) issued the following statement:
“The Governor likes to blame President Trump for the state’s budget woes. But, under Governor Newsom’s leadership, the state’s fiscal problems began long before President Trump took office.
“Make no mistake, the Governor doubled-down on a failed project and made high-speed rail a top priority for future cap-and-trade funding. The Governor has the authority to redirect the $1 billion of cap-and-trade funding that goes to the High-Speed Rail Authority to pay for vital services, especially wildfire prevention and water infrastructure.
“The Governor’s allocation of a billion dollars today is not even enough for the High-Speed Rail’s ever-ending black budget hole. There is a $7 billion shortfall to finish the first phase – from Merced to Bakersfield.
“Audit after audit, the High-Speed Rail has found to be mismanaged and plagued with delays. After 17 years and $13.7 billion already spent, the High Speed Rail Authority has not laid a single foot of track.”
Under the Governor’s revised budget proposal, the High-Speed Rail Authority will get a guaranteed floor of $1 billion off the top of the cap-and-trade revenue, up to a maximum of 25%. That means that, if auction revenues dip and only bring in $2 billion, HSR’s guaranteed $1 billion would be 50% of cap-and-trade expenditures.
Also, the Governor mentioned that the State was ‘humming’ along until President Trump imposed tariffs. On January 10, the Governor took out $7.1 billion of the state’s Rainy Day fund and claimed a surplus of $363 million in his budget proposal. President Trump was not sworn into office until January 20.
