California's 2025-26 Transportation Budget slashes $177M from High-Speed Rail amid broader revisions
California’s 2025–26 transportation budget went through two rounds of revisions before passage. The final version cuts $177 million from the High-Speed Rail Authority while restoring some earlier reductions to Caltrans and DMV operations.
California’s transportation budget for the 2025-26 fiscal year went through two major revisions before being enacted on June 27, 2025—beginning with the Governor’s original proposal in January and followed by the May Revision. Across these three iterations, the budget reflected shifting priorities and cost adjustments in response to updated revenue forecasts, legislative negotiations, and changing policy direction.
The most striking change is a $177 million reduction to the California High-Speed Rail Authority’s funding, a cut that remained in place through the final version. While some departments, like Caltrans, saw staffing restored after May reductions, the High-Speed Rail project absorbed a significant funding loss as lawmakers opted for a more cautious financial stance amid broader adjustments.
Enacted Budget vs. May Revision vs. Governor’s Budget
The following sections highlight how California’s transportation spending and staffing evolved across three key budget milestones:
Total State Funds (All Departments Combined)
| Budget Phase | Total State Funds | Change from Previous Phase | % Change |
|---|---|---|---|
| Governor’s Budget | $20.43B | – | – |
| May Revision | $19.84B | –$591.6M | –2.90% |
| Enacted Budget | $19.81B | –$31.9M | –0.16% |
Total All Funds (Including Federal and Other Sources)
| Budget Phase | Total All Funds | Change from Previous Phase | % Change |
|---|---|---|---|
| Governor’s Budget | $30.22B | – | – |
| May Revision | $29.70B | –$519.9M | –1.72% |
| Enacted Budget | $29.68B | –$21.4M | –0.07% |
Total Positions (All Departments Combined)
| Budget Phase | Total Positions | Change from Previous Phase | % Change |
|---|---|---|---|
| Governor’s Budget | 43,192.0 | – | – |
| May Revision | 42,479.4 | –712.6 | –1.65% |
| Enacted Budget | 43,214.4 | +735.0 | +1.73% |
Department-Level Changes
Department of Transportation (Caltrans – Code 2660)
| Budget Phase | State Funds | All Funds | Positions |
|---|---|---|---|
| Governor’s Budget | $9.33B | $18.67B | 22,614.2 |
| May Revision | $9.24B | $18.62B | 22,086.2 |
| Enacted Budget | $9.36B | $18.74B | 22,614.2 |
Caltrans saw funding and positions nearly return to original January levels in the enacted budget after midyear reductions.
High-Speed Rail Authority (Code 2665)
| Budget Phase | State Funds | All Funds | Positions |
|---|---|---|---|
| Governor’s Budget | $974.6M | $979.7M | 517.0 |
| May Revision | $882.5M | $887.7M | 511.0 |
| Enacted Budget | $797.6M | $802.7M | 517.0 |
The High-Speed Rail Authority faced continued cuts, ultimately down 18.1% in state funds from January to June.
DMV (Code 2740)
| Budget Phase | State Funds | All Funds | Positions |
|---|---|---|---|
| Governor’s Budget | $1.41B | $1.43B | 8,616.4 |
| May Revision | $1.47B | $1.50B | 8,435.8 |
| Enacted Budget | $1.46B | $1.49B | 8,635.8 |
Despite a reduction in staff from January to May, the DMV rebounded with a net increase in staffing by the time the budget was enacted.
Department of the California Highway Patrol (CHP – Code 2720)
| Budget Phase | State Funds | All Funds | Positions |
|---|---|---|---|
| Governor’s Budget | $3.28B | $3.52B | 11,299.4 |
| May Revision | $3.29B | $3.56B | 11,299.4 |
| Enacted Budget | $3.28B | $3.56B | 11,299.4 |
CHP's budget and staffing remained stable across all three phases.
High-Speed Rail Budget Cut by $177M as Oversight Office Funding Holds Steady
California’s High-Speed Rail Authority (HSRA) experienced one of the most significant cuts in the 2025–26 transportation budget cycle, with final state funding reduced by $177 million compared to the Governor’s January proposal. The enacted budget allocates $797.6 million in state funds and $802.7 million in total funds, restoring staffing levels to 517 positions after a brief reduction in the May Revision.
Despite the funding drop, the Office of the Inspector General for High-Speed Rail maintained flat funding at $4.3 million and 16 positions, signaling continued oversight even as the project’s budget was trimmed. The state’s High-Speed Passenger Train Bond Fund remains a key source of support, though drawdowns from this fund are not itemized in the published summary.
The funding changes reflect a more cautious fiscal approach to the project as the Merced–Bakersfield segment continues development and environmental clearance efforts advance on future extensions.
Mac Douglass
Notable Trends
- Caltrans positions were cut in the May Revision but fully restored in the final budget.
- High-Speed Rail continued to see aggressive reductions throughout the process.
- The DMV received moderate increases in both funding and staff, reflecting likely investments in digital upgrades or REAL ID compliance.
- The total transportation budget shrank by over $500M between January and May, then held steady into June.
Conclusion
California’s 2025–26 transportation budget reflects cautious revisions amid broader fiscal tightening, with the final enacted plan reinstating certain cuts from the May Revision. The evolution from January to June reveals the state’s shifting priorities—balancing infrastructure ambitions with practical workforce and funding realities.
