Assembly Member Macedo's proposal to redirect funding from California's high-speed rail project would temporarily alter the distribution of the state's Greenhouse Gas Reduction Fund to address water infrastructure and wildfire prevention needs. The measure would suspend the High-Speed Rail Authority's 25% allocation of the fund's annual proceeds during fiscal years 2026-27 and 2027-28, transferring those amounts to the General Fund.

The bill maintains the existing framework of the Greenhouse Gas Reduction Fund while creating a two-year exception to its standard distribution formula. Currently, the fund allocates its proceeds across multiple programs, with 35% supporting transit and sustainable communities initiatives, 25% designated for high-speed rail development, and additional portions reserved for safe drinking water access and forestry management. Under the proposed changes, the high-speed rail portion would instead flow to the General Fund, where the Legislature could appropriate it specifically for water infrastructure and wildfire prevention projects.

This reallocation would affect funding streams for multiple state entities. The High-Speed Rail Authority would temporarily lose its dedicated revenue source for project acquisition, construction, environmental review, and loan repayment costs. Meanwhile, agencies overseeing water infrastructure and wildfire prevention programs would become eligible for additional appropriations through the General Fund, though specific allocation decisions would require separate legislative action.