the San Jose to Merced segment. Per the 2023 Project Update Report, there are significant inflationary pressures which will cause budget increases. The Authority reports that the cost increases projected are in line with other HSR project cost increases (e.g., the UK "HS2" HSR rail project, and the Gateway Project in the Northeast Corridor). The Authority is also approaching the extensions differently by advancing design to the configuration-level (generally about 30% of costs), and is procuring right-of-way in advance of construction work needs. Early Operating Segment (Merced to Bakersfield). The total cost increase estimate until operational implementation of the Early Operating Segment (Merced to Bakersfield) at P65 is $7.5 billion. The total cost ranges from $29.8 billion to 32.9 billion. Northern California Extension (Merced to San Francisco). The total cost to operational implementation of the Northern California Extension (Merced to San Francisco) ranges from $21.2 billion to $35.5 billion. (see Note below). Southern California Extension (Bakersfield to Anaheim). The total cost to operational implementation of the Southern California Extension (Bakersfield to Anaheim) ranges from $31.9 billion to $52.8 billion. (See Note below). Entire Phase 1 System (San Francisco to Anaheim). The total cost to operational implementation of the Entire Phase 1 System (San Francisco to Anaheim) ranges from $88 billion to $128 billion. (See Note below). Note: A major unknown in these estimates is the cost of tunneling, which will not be known until exploratory field studies are done. The 2023 Project Update Report notes that permanent funding programs do not exist for high-speed rail, either nationally or in California. Current CAHSR funding for the project is estimated at about $25 billion. Of this California has contributed about 85% ($21.5 billion, assuming Cap-and-Trade stays at current levels through 2030), and the federal government has contributed about 15% (roughly $3.5 billion). The 2022 Business Plan indicated additional federal funds would be needed to complete the Merced-to-Bakersfield segment, and set a target of $8 billion to be awarded from the Bipartisan Infrastructure Law for the project. If that target is achieved, about $33 billion would be directed to the project (about 65% state, 35% federal in total). Future state or federal funds of about $2 billion would address full P65 cost estimate. Construction status and plans The groundbreaking ceremony for CAHSR was held on January 6, 2015 in Fresno, California. In the Central Valley major construction projects are underway. Three separate construction