(The Center Square) – California High-Speed Rail Authority CEO Ian Choudri has resigned, citing personal and family reasons.
The resignation by Choudri, who oversaw a long-delayed project that is expected to ultimately cost taxpayers $126.2 billion, is effective immediately.
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. The project has also faced pushback over more than $250 million spent on four consulting firms between 2024 and 2026, with the board expecting those firms to reimburse the state for unapproved expenses.
Recently, California Rural Legal Assistance threatened legal action, alleging track sections were unlawfully rerouted without state legislative approval.
Following the resignation, the California High-Speed Rail Authority appointed State Finance Director Joe Stephenshaw as interim CEO.
The Center Square reached out to the rail authority for comment, but did not hear back by publication time.
Political pressure had been building prior to Choudri's resignation. 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. The Becerra campaign was unable to do an interview Thursday with The Center Square, citing a “booked” schedule.
Originally designed to connect Southern California and the San Francisco Bay Area faster and cheaper than traditional travel, the high-speed rail line continues to encounter cost overruns and delays.
The initial Bakersfield-to-Merced segment alone is projected to cost $36 billion, with completion not expected until 2033.
Steven Greenhut, director of the Free Cities Center at Pasadena-based Pacific Research Institute, said the resignation reflects growing political reality.
"Well, it's really about time there's some accountability on the high-speed rail project, which is way behind schedule, way over budget," Greenhut told The Center Square Thursday. "It's in the midst of a travel scandal involving $600,000 in questionable travel spending with consultants, and so yeah, it's time for a change. The CEO saw the handwriting on the wall."
Greenhut noted that whoever permanently replaces Choudri must focus on restoring public trust and tightening oversight.
"There needs to be more accountability, more oversight of spending, better timelines," Greenhut said. "The project needs to align better with the promises that were made in Proposition 1A, which created the initial $9.95 billion in bond funding. They've got to speed this thing up and just really get a handle on the cost. There's a desperate need to restore faith in the project."
Lawmakers in Sacramento also reacted swiftly to the news. California Assembly Minority Leader Ali M. Macedo, R-Tulare, called the rail project a "black hole for taxpayers" and urged the board to enforce strict boundaries.
"While a change in leadership alone will not fix the fundamental flaws of the project, starting with the absurdity of its very existence and its ongoing drain on vital public resources, the governing Board and interim CEO must institute rigorous oversight and demand more transparency moving forward," Macedo said in a news release. "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."
This is a developing story.