LAS VEGAS, Nev. — Brightline West is in the middle of finalizing $6 billion of bank loans and contracts with construction companies for its $12 billion, 218-mile Las Vegas-Southern California high speed rail venture after selling more than $2.5 billion in private activity bonds, according to Tracy Larkin-Thomason, Director of Nevada’s Department of Transportation.
The Las Vegas Review-Journal reports that Larkin-Thomason recently told a DOT board meeting, “The bond sale was actually oversold by a billion dollars.” She says it was successful because of a favorable interest rate for investors compared with other financial opportunities.
The money raised through the recent bond sales in Nevada and California, along with a $3 billion Federal Railroad Administration grant reimbursing expenses as they are incurred, help provide collateral for the loans that will sustain Brightline West through at least four years of construction before operations begin generating revenue.
News Wire examined the proposed route in the median of Interstate 15 from the south end of the Las Vegas Strip to Metrolink’s Rancho Cucamonga, Calif., station earlier this year [see “Following the route of Brightline West,” News Wire Feb. 4, 2025]
The uncertain effect of Trump Administration-imposed tariffs may weaken stock market investment, allowing bonds paying higher rates of return to be perceived as more attractive. But elevated raw material prices could potentially make construction more expensive than the company originally projected.
U.S. Secretary of Transportation Sean Duffy expressed the administration’s support of Brightline West in a late February media event in Los Angeles to criticize California’s high-speed project.
Duffy’s assertion — “I’m not opposed to high-speed rail. The project from L.A. to Las Vegas … appears to be on budget, on time. Those are the projects that I think taxpayers are willing to invest in” — no doubt helped allay possible bond investor concerns.
Although a Nevada DOT senior project manager speculated in early February that right-of-way construction would start by early April [see “Brightline West construction should start …,” News Wire, Feb. 10, 2025], financing and construction contracts must be in place before funding is released.
With financing negotiations continuing, the company declined News Wire’s request for additional details at this time.
It is natural that the exemplary & ambitious BW project has attracted so much attention and will continue to do so. As known, it will be the nation’s first true high-speed passenger rail system. In addition, Brightline West will be another source of pride for Siemens Mobility.
Dr. Güntürk Üstün
CaHSR would probably do itself a favor if they allow private operator access to the rails or even a private operator outright. Would set up nicely for Brightline/Siemens to look at another corridor through Central Valley that would only feed more people to Vegas and back. Might also make it enticing for the Desert Corridor to come together a lot sooner.
CalHSR is behind schedule, over in cost and short on money.
BW is oversubscribed on the debt offering but also behind schedule.
I wonder what would happen if California were to offer a massive state infrastructure bond offering to finish CalHSR instead of more money from DC?
I wonder if BW has all of their DOT/FRA grants in hand and in the bank or will they get clawed back in the new Administration?
Given DOT Secretary Duffy’s remarks about Brightline West (BW), I highly doubt that the Trump administration would be clawing back grants. In BW, they have a chance to make a case for greater private sector involvement in passenger rail. So I believe Trump & Co. wants BW to succeed so they can promote this concept elsewhere.
Let’s hope BW can enter service in 2028…
Dr. Güntürk Üstün