Investments in High-Speed Rail Continue to Lift California’s Economy


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Investments in clean, electrified high-speed rail continue to generate positive impacts for the economy in California’s Central Valley and beyond. The California High-Speed Rail Authority’s 2021 Economic Analysis Report, issued earlier this year, illustrates the economic benefits of the high-speed rail program on a national, statewide and regional level, showing a rise in jobs and economic investment.

“The new analysis shows the continued progress of the nation’s first high-speed rail project as a strong economic driver,” said Authority CFO Brian Annis. “We’re proud of the work this project is doing to help disadvantaged communities, put men and women to work statewide and create opportunities for small businesses.”

Since 2006, the project has invested more than $8.5 billion in the planning and construction of the nation’s first clean, electrified high-speed rail system. More than one of every two of these dollars have been invested in California’s disadvantaged communities, spurring economic activity in these areas.

“The high-speed rail project is creating new opportunities for good paying jobs in the Central Valley, which is essential to keeping us on the path towards recovery from the COVID-19 pandemic,” said DeeDee Myers, Director for the Governor’s Office of Business and Economic Development.  “California is proud to be a major creator for green jobs – leading the way on the nation’s largest, greenest infrastructure project.”

High-Speed Rail contributed $840 million in California in labor income in the form of employment income (wages, benefits, payroll taxes, etc.) and supported 10,100 job-years of employment last year. Job-years are defined as the equivalent number of one-year-long, full-time jobs supported by the project. For example, if one full-time job is supported for two years, it represents two job-years. Additionally, the project contributed an economic output of $2.2 billion last year.

From vendors and contractors to local California businesses benefitting from the investment, the analysis highlights the value of indirect and induced benefits. The project’s total labor income earned by workers on the project is $5.2 billion since 2006, and the project’s total economic activity is calculated to be $13.7 billion.

As of July 2021, more than 630 certified small businesses throughout the state are also building high-speed rail. To date the Authority has also paid more than $950 million to certified Small Businesses, Disadvantaged Business Enterprises and Disabled Veteran Business Enterprises in California for their work.

The project has created more than 7,300 labor jobs, with 119 miles of the project underway across 35 active construction sites in California’s Central Valley. Nearly 300 miles of the 500-mile Phase 1 System from San Francisco to Los Angeles/Anaheim has also been environmentally cleared, which allows the Authority to position itself to advance construction in Northern and Southern California with additional federal funding opportunities and local partnerships.

The Authority’s economic impact analysis is updated annually and reflects data as of June 2021.

An updated webpage featuring the latest 2021 economic impact analysis can be found here. A related fact sheet can be found herePDF Document and information on project construction progress can be found at www.buildhsr.comExternal Link. A full presentation on the economic analysis will be given at Thursday’s Board of Director’s Meeting, which can be viewed starting at 11a.m. at

The following link contains recent video, animations, photography, press center resources and latest renderings: LinkExternal Link. These files are all available for free use, courtesy California High-Speed Rail Authority.


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