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Selma Today
By the People, for the People
California to Pay $537M to Settle High-Speed Rail Lawsuit
State officials face criticism over project's ballooning costs and lack of progress
Published on Feb. 9, 2026
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California will pay a construction company $537 million to settle a lawsuit over delays and change orders in the state's high-speed rail project, which has faced years of cost overruns and setbacks. The contractor, Dragados Flatiron Joint Venture, cited revisions, design changes, and land acquisition issues as driving up costs, with a total of 597 change orders. This latest settlement comes as state officials are pushing a bill to conceal embarrassing records related to the troubled project.
Why it matters
California's high-speed rail project has long been a source of controversy, with the state auditor investigating it 10 times over the past 15 years. The project, which was originally sold to voters as a $45 billion endeavor, has now seen cost estimates soar to over $100 billion, with little progress to show for it. This latest settlement highlights the ongoing mismanagement and lack of transparency surrounding the project.
The details
The $537 million settlement is with the Dragados Flatiron Joint Venture, the construction company working on the high-speed rail project. The company cited 597 change orders, including revisions, design changes, and land acquisition issues, as driving up costs. This comes as state officials are pushing a bill, AB 1608, that would authorize the concealment of embarrassing high-speed rail records from the public.
- The state auditor has investigated the high-speed rail project 10 times, going back more than 15 years.
- California voters approved a $9.95 billion bond in 2008 toward a $45 billion 'bullet train' project connecting Los Angeles and the Bay Area.
- Eighteen years later, the project has not a stick of track to show for it, and cost estimates have soared to well over $100 billion.
The players
Gavin Newsom
The governor of California who has overseen the high-speed rail project's ongoing issues.
Dragados Flatiron Joint Venture
The construction company that was awarded a $537 million settlement from the state of California over delays and change orders related to the high-speed rail project.
Lori Wilson
The California state legislator who introduced AB 1608, a bill that would authorize the concealment of embarrassing high-speed rail records from the public.
What’s next
The judge in the case will decide on Tuesday whether or not to approve the $537 million settlement between the state of California and the Dragados Flatiron Joint Venture construction company.
The takeaway
California's high-speed rail project has become a cautionary tale of government mismanagement and lack of transparency. Despite years of warnings and investigations, the project continues to spiral out of control, with ballooning costs and little progress to show for it. This latest settlement underscores the need for greater accountability and oversight in the state's handling of major infrastructure projects.
