California Rail Authority Paid $600,000 in Unallowable Consultant Travel

The California High-Speed Rail Authority paid nearly $600,000 in unallowable travel expenses to consultants between 2024 and 2026, according to an audit by the California Office of the Inspector General. The investigation found that consultants from firms including KPMG LLP, Nossaman LLP, AECOM-Fluor Joint Venture, and SYSTRA/TYPSA Joint Venture were reimbursed for first-class flights, private aircraft, and rideshares to gyms, nightclubs, a tiki bar, and a cigar lounge.

Roughly 60% of the reviewed travel expenses lacked advance approval, with some agency staff remaining unaware of trips until receiving invoices. The audit noted that consultants often justified these expenses through vague requests or executive orders from CEO Ian Choudri. While the authority committed to strengthening internal controls and recovering improper costs, it disagreed with recommendations requiring detailed justifications for in-person versus remote work.

The findings emerge as the project's estimated cost has surged from $33 billion to at least $126 billion, with warnings that the agency may exhaust its cash by December 2027. Republican lawmakers, including Assembly GOP Leader Alexandra Macedo and Senate Transportation Committee Chair Tony Strickland, condemned the spending as a subsidy for consultant lifestyles and called for the project to be shut down.