California’s long-delayed and financially challenged high-speed rail project has secured a major funding commitment that could keep it moving forward for the next two decades.

Governor Gavin Newsom has reached an agreement with state lawmakers to allocate $1 billion per year through 2045 for the project. The funding will be enough to complete the Central Valley segment — running between Bakersfield and Merced — by 2033.

However, the new funding falls far short of what’s needed to finish the full rail line originally intended to connect the San Francisco Bay Area with the Los Angeles region.

Despite ongoing setbacks, many state leaders remain optimistic about the project’s potential. The original 2008 plan called for a high-speed connection between San Francisco and Los Angeles at a cost of around $33 billion. Today, that estimate has ballooned to roughly $130 billion.

The project’s growing costs and delays have drawn intense scrutiny, and earlier this year the Trump administration officially withdrew $4 billion in federal support for the rail system.

Still, the latest state funding deal was welcomed by supporters. Ian Choudri, CEO of the California High-Speed Rail Authority, praised the continued commitment from state officials.

“I’m thankful to Governor Newsom, our legislative leaders, and partners across the state and nation — including labor unions — for their dedication and leadership,” Choudri said in a statement Wednesday. “This agreement sends a powerful message about California’s future. It’s an investment in jobs, cleaner air, and more connected, sustainable communities.”