California high-speed rail chief resigns amid bloated spending scandal | California

The chief executive of California’s high-speed rail authority abruptly resigned Wednesday, more than a month after a state watchdog determined the agency had misused public funds.

In September, the California Inspector General’s Office released an investigative report concluding that the rail authority paid $543,000 in reimbursements related to consultant travel that was not authorized, including international or out-of-state travel expenses.

The report raised questions about whether business and pleasure were being mixed under chief executive Ian Choudri. The rail authority paid $81,000 for consultants’ travel expenses to locations that had no official function, including gyms, an escape room and a nightclub.

In his resignation email, obtained by CalMatters, Choudri cited “important personal and family priorities.”

“This was not an easy decision, as leading the authority has been one of the most significant and rewarding chapters of my professional life,” he wrote.

Choudri was sworn in for the rail authority’s top post in 2024.

The agency is charged with building a high-speed rail line that would reduce travel time between Los Angeles and San Francisco, which are about 380 miles apart.

High-speed rail, which initially drew awe-inspiring comparisons to the rapid transportation modes of China and Japan, has become a political and financial headache for California.

Eighteen years after state voters green-lighted a multibillion bond project, no rail tracks have been laid as the agency continues to seek funding.

Its price has soared to more than $100 billion. The Trump administration, which has conflicted relations with several senior California officials, dealt another blow to the project by withdrawing $4 billion last year. At the time, US Transportation Secretary Sean Duffy called it a “mess” and “a train to nowhere.”

Xavier Becerra, who is heavily favored to be California’s next governor, hinted this week that there would be a personnel shakeup at the rail authority if he wins the election against rival Steve Hilton.

“We’re going to have to clean up a lot. The high-speed rail authority is going to have to be really different if we’re going to move forward with this project,” Becerra told KCRA News, in an interview that aired hours before Choudri’s departure.

“I need to earn the public’s trust. I can’t get it if I keep the same characters.”

Joe Stephenshaw, director of the California Department of Finance, will serve as interim CEO of the rail authority.