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By Tom Sanders
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The resignation of the CEO of the California High-Speed Rail Authority after a two-year run plagued by an expenses scandal, spiraling costs and project delays has prompted a renewed focus on the future of the project.
In a letter sent to executives ahead of the Board of Directors' meeting on Thursday, Chief Executive Ian Choudri said he was stepping down to focus on “important personal and family priorities,” according to a copy of an emailed resignation obtained by CalMatters.
“This has not been an easy decision, as leading the Authority has been one of the most meaningful and rewarding chapters of my professional life,” he wrote.
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Newsweek has contacted Democratic gubernatorial candidate Xavier Becerra and Republican gubernatorial candidate Steve Hilton for comment.
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Spiraling Costs, Expenses, Scandal
Appointed in 2024, Choudri’s tenure saw the authority lose more than $4 billion in federal funding under President Donald Trump's administration. In September, state investigators found that the agency paid $592,900 in travel expenses for contracted consultants that appeared to violate state rules, with reimbursed trips including a nightclub, escape room and cigar lounge.
The cost of the high-speed rail project, first approved in 2008, has also ballooned from $45 billion to an expected figure between $126 billion and $231 billion, the authority reported, with tracks still yet to be laid.
“Today’s news reflects the Board’s commitment to accountability and transparency, consistent with the Governor’s mandate,” board Chair Steve Kawa said, in part, in a Thursday statement sent to Newsweek. “Californians deserve a project they can trust.”
“In that spirit, and consistent with that mandate, the Board met in closed session and has unanimously voted to appoint Joe Stephenshaw as the new Interim Chief Executive Officer of the California High Speed Rail Authority. His credentials speak for themselves, both as a steward of public funds and a proven leader.
“Joe has served the people of the State of California for over 20 years in budget roles across the Legislature and Administration. Most recently, he has served as Governor Newsom’s budget director for the past four years.
“His experience as the Director of the Department of Finance, combined with his commitment to transparency and accountability, make him the perfect person to carry us forward into the next exciting chapters of building this project.
“At this meeting, we authorized the purchase of the first three trainsets. In a few short moments, we will consider adopting the final environmental clearance for the LA-to-Anaheim segment. And in a few months, we will begin to lay track. High Speed Rail is happening, and we have full confidence in Joe to continue moving us towards our goals.”
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Stephenshaw is the state’s Department of Finance director.
Following the authority's report, the board voted to limit Choudri’s contracting authority, introducing legislation requiring in-house legal approval on any contracts less than $25 million. The board reportedly has been weighing additional disciplinary action against Choudri for weeks, a source from the authority told Associated Press, including the CEO’s possible termination.
Earlier this year, Choudri was arrested on suspicion of domestic battery, although the charges were later dropped after a sheriff’s office cited insufficient evidence, KCRA in Sacramento reported. Choudri took a voluntary leave of absence until the matter was resolved.
Call for End of Plan
Choudri's departure led to a renewed call for the project to be scrapped.
Republican state Senator Tony Strickland told Newsweek in an emailed statement on Friday: “The California High-Speed Rail Authority has had four CEOs since 2010, including Ian Choudri, appointed in 2024.
"Instead of reshuffling the chairs on the Titanic, it’s time to pull the plug on the high-speed fail and deliver immediate relief to struggling Californians paying the nation’s highest gas taxes. Californians deserve accountability, not another revolving door of leadership.”
He told radio host Jennifer Horn on Thursday: “We’ve spent billions of dollars on this project and not one track of rail has been laid down. It started out as a $33 billion project to go from L.A. to San Francisco. Today, it’s a $231 billion project and that doesn’t account for borrowing.
“So what this one project is, is almost the equivalent of what we spend in an entire state budget,” Strickland added. “I’ve been at the forefront in California in saying it's time to pull the plug on this high-speed fail.”
What's Next for California High-Speed Rail?
Becerra suggested on Thursday that there would be a major shake-up at the authority should he defeat Hilton, in an interview aired just hours before the CEO’s departure.
When asked whether Choudri would remain in his position should he be elected, Becerra said: “There's going to be a new sheriff in town. We’re going to have to scrub a lot. The high-speed rail authority’s going to have to look really different if we’re going to continue this project. I need to gain the confidence of the public. I can't gain it if I keep the same characters."
Hilton went one step further and pledged to scrap the high-speed rail project entirely if elected, calling the railway a “monument to the waste and failure and incompetence of our government" and said he would junk it on “day one” of his election.
U.S. Transportation Secretary Sean Duffy previously criticized the project, calling it a “boondoggle,” a “failed experiment” and a “train to nowhere.”
A spokesperson for California Governor Gavin Newsom, who has publicly supported the railway, said in a statement that his office is “committed to delivering the nation's first high-speed rail system and to protecting California taxpayers every single step of the way. That's why he brought fresh leadership onto the High-Speed Rail Authority Board this year, with a clear charge to demand accountability for every dollar and transparency the public can count on. The Governor welcomes today's announcements as an important step in that direction.”
Contact Newsweek editors on this story: Tobias Meyjes and Dave Siminoff.
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