Las Vegas High-Speed Rail on Hold

A plan to build a high-speed rail line between Southern California and Las Vegas is on hold after the developer came up short on fundraising. Affordable housing projects in California stand to benefit from the newly available state bond funding.

1 minute read

November 23, 2020, 9:00 AM PST

By James Brasuell @CasualBrasuell


Downtown Las Vegas

Sopotnicki / Shutterstock

"Fortress Investment Group is postponing its plan to build a train to Las Vegas from Southern California after failing to sell a record amount of unrated municipal debt to finance the speculative project," reported Romy Varghese at the end of October.

Varghese blames the failure on a lack of investor appetite during the pandemic, but the company has also recently weathered a major upheaval, splitting from Virgin Trains USA.

Fast forward to the middle of November, and the attention turned to the 600 million of California private activity bonds that had been allotted by the state to the high-speed rail system. Since its bond sale, Fortress has had to return that funding to the state.

At a November 18 hearing, the California Debt Limit Allocation Committee, chaired by State Treasurer Fiona Ma, decided to redistribute that huge chunk of funding to affordable housing projects.

Varghese reports again: "The Debt Limit Allocation Committee, which controls the allotment of bonds, voted to allocate all to affordable housing projects, first prioritizing those that serve extremely low income residents, said committee chair and Treasurer Fiona Ma Wednesday after the meeting."

Wednesday, November 18, 2020 in Bloomberg

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business

Large spinning swing ride at Chicago's Navy Pier.

The Subversive Car-Free Guide to Trump's Great American Road Trip

Car-free ways to access Chicagoland’s best tourist attractions.

July 3 - Streetsblog Chicago

Aerial view of downtown San Antonio, Texas at night with rotating Tower of the Americas in foreground.

San Antonio and Austin are Fusing Into one Massive Megaregion

The region spanning the two central Texas cities is growing fast, posing challenges for local infrastructure and water supplies.

July 3 - Governing