'Fiscal train wreck'
The vote on Friday also allows California to use $3.2bn in federal financing. The state will have more federal funds because several states turned down money for high-speed rail projects.
Senate Republicans argued California's budget - currently projected to be $16bn in the red - has already been hit too hard to approve the funding.
"This is a colossal fiscal train wreck for California," Republican Senator Tony Strickland said during debate. "Members, this bill is spending money we simply don't have here in California."
Many Democrats said high-speed rail was essential to the state's future, including dealing with population growth.
"There could not conceivably be enough freeway lanes to manage another 50% in automobiles," Senator Mark Leno said. "There couldn't possibly be enough runway space to accommodate an increase in 50% of additional air passengers."
Some business leaders from the San Francisco Bay and Silicon Valley areas supported the measure and had been working to lobby legislators in recent weeks.
Bay Area Council president Jim Wunderman called the vote a "courageous step forward for California's future".
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