California High-Speed Rail Chief Quits as Travel-Spending Scandal Boils Over

California High-Speed Rail Chief Quits as Travel-Spending Scandal Boils Over

A sudden resignation, effective immediately

Ian Choudri, chief executive of the California High-Speed Rail Authority, resigned Wednesday night, board chair Steve Kawa confirmed at the board's Thursday meeting. The resignation took effect immediately. Board member Henry Perea confirmed the timing, and the internal email announcing the departure was first reported by CalMatters. The board named Joe Stephenshaw, director of the California Department of Finance, as interim president.

"Personal and family reasons" — and a proud farewell letter

Kawa said Choudri resigned for personal and family reasons. In his resignation letter, Choudri said he was proud of the transformation achieved on his watch, writing that he took on a project facing significant challenges and serious questions about its prospects and led its turnaround into a successful program. Choudri, a veteran transportation engineer with high-speed rail experience in France and Spain, was hired in August 2024 and earned more than $534,000 this year, with reported total annual compensation of about $638,943.

An $800,000 travel scandal with gyms, cigar lounges and tiki bars

The resignation followed a September investigative report from the authority's Office of Inspector General. It found about $800,000 in travel spending by four consulting firms had not been approved in advance, with roughly $543,000 to $592,000 deemed unallowable. Reimbursed items included premium airfares, Uber and Lyft upgrades, trips to gyms, escape rooms, cigar lounges, tiki bars and private residences with no documented state business purpose, plus rideshare cancellation fees, same-day flight bookings and claims without receipts. Investigators also found the authority paid more than $76,000 for key consultants to travel from out of state between 2024 and 2026, including one consultant who flew in from Denver 20 times to "meet with the executive team."

Four consultants, $250 million, and a board that had already curbed his power

The four firms at the center of the report are KPMG, Nossaman LLP, Systra-Typsa and AECOM-Fluor. The authority says California taxpayers paid the four firms more than $250 million between 2024 and 2026; the inspector general's team analyzed less than $2 million of that spending. CBS California separately reported receipts showing late-night rides and a $94.39 pizza delivery billed near Choudri's home. Weeks before the resignation, the board voted to limit Choudri's contract authority and ordered fixes including a new travel approval form by year's end. Republican Assembly Minority Leader Alexandra Macedo had called for his firing, and gubernatorial candidate Xavier Becerra said he would likely have removed Choudri if elected. One authority source said the board had been weighing further discipline, including possible termination.

A $126 billion question: what happens to the bullet train now?

Choudri leaves as construction continues on the 119-mile active stretch in the Central Valley, where 66 structures are complete and nearly 90 miles of guideway are done. The current plan calls for a 171-mile Merced-to-Bakersfield segment to open as early as 2033, with full San Francisco-to-Los Angeles service targeted for 2040 if funding arrives. Voters approved a $10 billion bond in 2008 for a $45 billion line by 2020; the latest business plan puts the full cost at $126 billion to $231 billion. The board says it will recoup misspent travel money and use AI screening to flag improper requests, while Stephenshaw steadies the agency.