California High-Speed Rail CEO Resigns Amid Spending Scandal
Ian Choudri resigned as CEO of the California High-Speed Rail Authority following a state investigation into the misuse of taxpayer funds for luxury travel.
CEO Ian Choudri resigned from the California High-Speed Rail Authority on Wednesday, October 28, 2026, citing personal and family priorities. His departure follows a state investigation revealing that the agency reimbursed four consulting firms—KPMG, Nossaman LLP, Systra-Typsa, and AECOM-Fluor—for between $600,000 and $800,000 in questionable travel expenses. These funds were used for visits to nightclubs, cigar lounges, gyms, an escape room, and a tiki bar, some at Choudri's request. In response to the findings, the consulting firms have repaid nearly $1.3 million to the agency.
Joe Stephenshaw, Director of the California Department of Finance, was appointed as interim CEO. The resignation comes as the board had already restricted Choudri's contracting authority and considered his termination. Choudri's tenure was further clouded by a domestic battery arrest earlier in the year and the loss of $4 billion in federal funding under the Trump administration.
The project remains under severe financial strain, with total cost estimates now ranging from $126 billion to $231 billion. Warnings indicate the authority could run out of cash by December 2027. Despite these crises, the board unanimously approved a $772.1 million contract with Siemens Mobility to build three high-speed trains by 2030. The agency also faces a lawsuit from the Community Alliance for a Sustainable Economy regarding the relocation of the downtown Merced station.
