Gov. Gavin Newsom said California is entering the track-installation phase of its high-speed rail project after the state completed a staging facility in Kern County.

In a Feb. 3 announcement, Newsom, a Democrat, said the California High-Speed Rail Authority (CHSRA) completed the Southern Railhead Facility, a 150-acre site near Wasco—around 25 miles northwest of Bakersfield. The site will operate as a central logistics hub for the delivery, storage, and deployment of materials to electrify and operate the system.

“With the completion of the Southern Railhead Facility, we’ve taken another critical step in the track-laying stage,” Newsom said in a release. “California is building the nation’s first high-speed rail system, and we’re proving it can be done.”

The Rail Authority said the railhead is connected to the national freight network and includes temporary freight lines and storage tracks, warehouse and storage space, maintenance and operations areas, and infrastructure to coordinate trains, equipment, and personnel. Installation of freight tracks at the site is complete, the state said.

The announcement follows a major shift in California’s approach to federal involvement in the project.

The California High-Speed Rail Authority (CHSRA) filed a notice of voluntary dismissal on Dec. 23, 2025, ending its lawsuit against the Trump administration over a $4 billion federal grant cancellation. The dismissal was without prejudice, meaning the Rail Authority could refile in the future.

The Rail Authority sued in July after the Trump administration withdrew the funding. Newsom said at the time the funding reduction was politically motivated and unlawful.

The voluntary dismissal came two weeks after Judge Dale Drozd of the U.S. District Court for the Eastern District of California rejected a Justice Department request to dismiss the case on venue grounds, according to a report on the litigation. Drozd ruled that the dispute could proceed.

A spokesperson for the Rail Authority told The Epoch Times at the time that the decision to withdraw the lawsuit reflected the state’s view that the federal government “is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California.”

The spokesperson added that federal requirements have “at times, hindered project delivery by adding cost and delays without adding value—creating inefficiencies, constraining innovation, and slowing construction.”

In the Feb. 3 release, state officials emphasized that the project is moving from planning toward implementation.

California Transportation Secretary Toks Omishakin said the milestone shows the state is shifting “from planning to implementation.”

Ian Choudri, CHSRA’s CEO, said the railhead facility is a “critical step” in the track-installation process and said procurements are underway for laying electrified track and systems.

The press release said that over the past year, the Rail Authority has invited industry to bid on laying electrified track and systems, secured suppliers for long-welded rail, and begun acquiring key materials needed for installation. It also said it’s working to attract investors.

That effort was already underway before the Feb. 3 announcement. Choudri said on Dec. 19 that the Rail Authority launched a procurement process that “formalizes efforts to partner with private investors and developers, with the shared goal of delivering California’s transformational program faster, smarter, and more economically.”

The state also pointed to longer-term funding to support the next phase. The Feb. 3 release said the state Legislature’s renewal of California’s Cap-and-Invest program secured an annual commitment of $1 billion through 2045.

The governor’s office said 171 miles are under design and construction from Merced to Bakersfield, with 119 miles under active construction, more than 80 miles of guideway finished, and 58 completed structures, such as bridges, overpasses, and viaducts.

The office also said the project has generated about 121,910 job-years and nearly $25 billion in economic output. It said 98.6 percent of project spending in fiscal year 2024–25 supported California businesses and workers.

The federal government has designated nearly $7 billion in funds for the project, of which $2.6 billion has been spent so far, with the rest either unspent, tied up in litigation, or canceled.

The Trump administration has said the authority had no viable plan to finish a large segment of the project in the Central Valley and has criticized the project as a “train to nowhere.”

The project to connect San Francisco to Los Angeles via high-speed rail was approved by voters in 2008 with an initial $10 billion bond.