California Bullet Train CEO Resigns Amid Cost Concerns

WHO:

The Guardian - Ian Choudri resigned as chief executive of the California High-Speed Rail Authority; he had taken the post in 2024.

KCRA - High-Speed Rail Board Chair Steve Kawa confirmed Choudri’s resignation and said it was effective immediately.

The Guardian; KCRA - Joe Stephenshaw, director of California’s Department of Finance, was named interim CEO.

KCRA - Gov. Gavin Newsom’s spokesperson said the governor welcomed the leadership announcements and considered Stephenshaw the right person to oversee the authority in the interim.

The Guardian; KCRA - Xavier Becerra, a candidate for California governor, said the authority would need to look different for the project to continue; he also said he would likely have removed Choudri if elected.

The Guardian - Becerra said, “I need to gain the confidence of the public. I can’t gain it if I keep the same characters in place.”

WHAT:

The Guardian; KCRA; Newsweek - Choudri resigned amid controversies and an expenses investigation involving the rail authority.

The Guardian - A California inspector general’s report found the authority had paid $543,000 in impermissible consultant travel reimbursements, including international and out-of-state expenses.

The Guardian - The authority paid $81,000 for consultant trips to places with no official purpose, including gyms, an escape room, and a nightclub.

KCRA - The board had voted to limit Choudri’s spending authority in response to questionable taxpayer-funded travel expenses.

KCRA - The authority reported that taxpayers spent more than $250 million on KPMG, Nossaman LLP, Systra-Typsa, and AECOM-Fluor from 2024 to 2026; the inspector general reviewed less than $2 million of that spending.

KCRA - The board expected the four consulting firms to reimburse the state for impermissible expenses identified in the inspector general’s report.

KCRA - Choudri earned about half a million dollars annually as CEO.

KCRA - The Bakersfield-to-Merced segment was projected to cost $36 billion and be completed in 2033.

The Guardian - The project’s estimated cost had risen above $100 billion; no tracks had been laid, and the authority continued seeking funding.

The Guardian - The Trump administration withdrew $4 billion in federal funding; Transportation Secretary Sean Duffy called the project a “boondoggle” and a “train to nowhere.”

WHERE:

The Guardian - The planned line is intended to connect Los Angeles and San Francisco, about 380 miles apart.

KCRA - The proposed route was intended to run from Southern California to the Bay Area; thousands of workers were reported to be working across the Central Valley.

KCRA - California Rural Legal Assistance threatened legal action over an alleged state-law violation involving rerouting tracks without prior approval from the California Legislature.

WHEN:

The Guardian - Choudri’s resignation email cited “important personal and family priorities.”

KCRA - Kawa said Choudri resigned Wednesday night; the board confirmed the resignation at its Thursday meeting.

The Guardian - The inspector general released its investigative report in September.

KCRA - The authority’s reported taxpayer spending on the four consulting firms covered 2024–2026.

The Guardian - California voters approved the multibillion-dollar bond project 18 years before the article.

WHY:

The Guardian; KCRA - Choudri cited personal and family reasons for resigning.

The Guardian - The inspector general’s findings raised questions about whether business and personal activities were mixed under Choudri’s leadership.

HOW:

The Guardian - Choudri wrote in his resignation email, “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.”

KCRA - Newsom’s spokesperson said the governor had brought new leadership onto the authority’s board and charged it with ensuring accountability for spending and public transparency.

(UPDATED October 30, 2026 20:02 UTC)

California’s high-speed rail chief resigned amid an expenses investigation, and a finance director became interim CEO. An inspector general found improper consultant travel spending, prompting restrictions. Project costs exceed $100 billion, and federal funding was withdrawn.