Vegas-to-L.A. High-Speed Rail Project Lands $2.5 Billion in Bond Sales

Progress on the construction of an electric, high-speed train connecting Las Vegas and Los Angeles is moving forward thanks to a significant bond sale. In March, private activity bonds worth $2.5 billion were issued to support Brightline West’s large-scale rail project. The sale was facilitated by the California Infrastructure and Economic Development and the State of Nevada Department of Business and Industry, with legal assistance from Orrick law firm.

This funding injection will be directed towards building a 218-mile rail line along the median of Interstate 15, enabling trains to reach speeds of up to 200 mph. This pioneering project, the first of its kind in the United States, commenced in April last year and aims to commence operations before the 2028 Summer Olympics in Los Angeles. Brightline estimates that the new passenger rail system will halve travel time to just 2 hours between Los Angeles and Las Vegas.

With an estimated cost of $12 billion, the project received $3 billion from the federal infrastructure law. The sale of private equity bonds utilized a portion of the $5.5 billion tax-exempt private activity bond volume cap allocations from the U.S. Department of Transportation, according to Orrick. The electric trains are designed to be environmentally friendly, producing zero carbon emissions. Brightline anticipates that by encouraging people to opt for the train instead of planes or cars, the system will prevent the release of 400,000 tons of carbon dioxide into the atmosphere annually.

The system is planned to have four stops, including one near the Vegas Strip, and stations in California at Victor Valley, Hesperia, and Rancho Cucamonga. The Rancho Cucamonga Station will offer a connecting service to downtown L.A. via the California Metrolink. Brightline, known for introducing high-speed passenger rail to Florida, completed its link between Orlando and Miami in 2023.