Ian Choudri has resigned as CEO of the California High-Speed Rail Authority, effective immediately, citing personal and family reasons. The board unanimously appointed State Finance Director Joe Stephenshaw as interim CEO.
Choudri’s departure followed the board restricting his spending power after an inspector general report uncovered questionable taxpayer-funded travel expenses. The project, expected to ultimately cost taxpayers $126.2 billion, has also faced pushback over more than $250 million spent on consulting firms, and California Rural Legal Assistance threatened legal action, alleging track sections were unlawfully rerouted without state legislative approval.
The long-delayed project was designed to connect Southern California and the Bay Area. The initial Bakersfield-to-Merced segment alone is projected to cost $36 billion, with completion not expected until 2033.
Authority Board Chair Steve Kawa said the board thanked Choudri for his service and has appointed new members to improve accountability. Californians deserve a project they can trust, Kawa said, and the governor will continue to insist on that.
Democratic gubernatorial candidate Xavier Becerra had recently signaled that Choudri’s tenure was likely ending, saying the project needed a major overhaul. Republican Assemblymember David Tangipa said the resignation was not a surprise, noting the board had removed Choudri’s ability to grant contracts under $25 million without review and what he described as issues appearing to be corruption. Assembly Minority Leader Ali M. Macedo called the project a black hole for taxpayers and urged the board to enforce strict boundaries, including preventing Choudri from becoming a paid consultant. Steven Greenhut of the Pacific Research Institute said the resignation reflected a growing political reality and that the next CEO must focus on restoring public trust.
Analysis
Why This Matters
- The resignation intensifies the accountability crisis over a $126 billion project that is way over budget and behind schedule.
- It occurs amid a gubernatorial election, with candidates already using the project as a political issue.
- Legal challenges and spending probes could reshape oversight for the remainder of the project.
Background
California’s high-speed rail project was approved by voters under Proposition 1A in 2008 with an initial $9.95 billion in bond funding. Designed to link Southern California and the Bay Area, the project has been repeatedly delayed and over budget. The initial operating segment between Bakersfield and Merced is not expected to be completed until 2033.
Key Perspectives
Steven Greenhut, Pacific Research Institute: the resignation reflects overdue accountability and a need to restore public trust.
Assemblymember David Tangipa: the resignation was not a surprise given the removal of the CEO’s contracting authority and the project’s contracting issues.
Assembly Minority Leader Ali M. Macedo: called the project a black hole for taxpayers and urged strict oversight.
Xavier Becerra: signaled the project needed a major overhaul and that a leadership change was necessary.
What to Watch
- Whether the interim CEO tightens control over consulting contracts and travel expenses.
- The outcome of the threatened legal action from California Rural Legal Assistance over the route change.
- Whether the project’s timeline and cost estimates are revised under new leadership.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedThe high-speed rail effort is expected to cost $126 billion.The Center Square California: “the project that is expected to ultimately cost taxpayers $126.2 billion”
- SupportedIan Choudri resigned as CEO effective immediately, citing personal and family reasons.The Center Square California: “California High-Speed Rail Authority CEO Ian Choudri has resigned, citing personal and family reasons. The resignation by Choudri ... is effective immediately.”
- SupportedThe board unanimously appointed State Finance Director Joe Stephenshaw as interim CEO.The Center Square California: “the California High-Speed Rail Authority met in closed session and voted unanimously to appoint State Finance Director Joe Stephenshaw as interim CEO.”
- SupportedChoudri’s departure followed the board restricting his spending power in response to an inspector general report about questionable taxpayer-funded travel expenses.The Center Square California: “Choudri's departure comes after the rail board restricted his spending power in response to an inspector general report uncovering questionable taxpayer-funded travel expenses.”
- SupportedThe project faced pushback over more than $250 million spent on consulting firms.The Center Square California: “The project has also faced pushback over more than $250 million spent on four consulting firms between 2024 and 2026”
- SupportedCalifornia Rural Legal Assistance threatened legal action, alleging track sections were unlawfully rerouted without state legislative approval.The Center Square California: “California Rural Legal Assistance threatened legal action, alleging track sections were unlawfully rerouted without state legislative approval.”
- SupportedThe initial Bakersfield-to-Merced segment is projected to cost $36 billion.The Center Square California: “The initial Bakersfield-to-Merced segment alone is projected to cost $36 billion”
- SupportedCompletion of the initial segment is not expected until 2033.The Center Square California: “with completion not expected until 2033.”
- SupportedTangipa said the board had removed Choudri’s ability to grant contracts under $25 million without review.The Center Square California: “even the board removing his ability to grant contracts under $25 million without review was pulled away.”
- SupportedTangipa described issues with contracting and awarding as appearing to involve corruption.The Center Square California: “things shrouded in what appears to be corruption with the contracting, the awarding”
- SupportedMacedo urged the board to ensure Choudri could not become a highly paid private consultant for the project at public expense.The Center Square California: “The Board must start by ensuring Mr. Choudri is not allowed to transition into a highly paid private consultant for the project at the public's expense.”
- SupportedBecerra signaled in a recent television interview that Choudri’s tenure was likely nearing an end and said the project needed a major overhaul.The Center Square California: “Democratic gubernatorial candidate Xavier Becerra signaled in a recent television interview that Choudri's tenure was likely to be nearing an end, noting the project needed a major overhaul.”