By New York Post (U.S.) | Created at 2026-10-10 22:41:45 | Updated at 2026-10-10 23:28:22
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The CEO of California’s beleaguered high-speed rail project is facing the fallout of a spending scandal after the High-Speed Rail Board voted Friday to cancel his contracting powers — after which he refused to answer reporters in person.
The board voted 7-2 to strip Chief Executive Ian Choudri of his sole authority to sign and manage contracts under $25 million and to require the agency’s in-house attorneys to approve or change any new or existing contracts.
“I wanted to call this special meeting to demonstrate just that we are not going to ignore, and we’re not going to sweep under the rug issues that are affecting this organization and impacting the people of California,” Board Chair Steve Kawa said at the meeting.
“We don’t need another special meeting because we know if there are issues there, we have to address them now. But if they’re not addressed by the staff, they will be addressed by this board.”
The decision came after a damning audit revealed that the High-Speed Rail Authority paid more than $680,000 in dubious travel expenses to consultants connected to the project — including premium plane tickets and rideshare trips to gyms, nightclubs and an “escape room.”
The rail agency paid some $2 million in travel payments to four consulting firms — financial, legal and track design contractors — but handed out a slew of questionable reimbursements in the process.
Consultants billed the state for premium flight upgrades, prohibited international travel and rideshare trips to restaurants, a cigar lounge and Choudri’s house, according to the report and speakers at the meeting.
“I am outraged that we would be treated like a piggy bank for these kinds of expenditures,” said board member Lynn Schenk.
Choudri reportedly told board members at the meeting that “we remain committed” and “take full responsibility and accountability to fix if there was something broken in the system.” He mentioned “displicinary actions” were being taken but did not elaborate.
After the meeting, a number of reporters pressed to ask Choudri questions about the expenses and calls for resignation. Video captured by CBS shows them following the CEO around as he walks and ignores questions, before he escapes off into a separate room.
Afterward, the rail authority’s acting head of external affairs Matt Rocco intervenes to speak to reporters on behalf of Choudri, as Rocco gets into contentious back-and-forth discussions with reporters. The journalists ask why Choudri can’t answer questions himself in person.
Rocco never directly answers that question and insists reporters go through his office later.
After California's independent High-Speed Rail inspector general found widespread failures in consultant travel oversight, whistleblowers provided CBS California Investigates with some of the underlying expense records.
Find more from our investigation at the link in our bio. pic.twitter.com/hyF3OjAP0r
In an emailed statement to The California Post, Choudri said that his agency is taking all appropriate steps to fix the reimbursement issues, such as strengthening internal oversight and mandating updated training for its managers and consultants.
“Over the last two years the Authority has taken specific and focused efforts to reduce its consultant costs,” Choudri said, claiming there’s been upwards of $68 million of savings on consultant contracts.
“These improvements and savings position the Authority to pursue innovative financing and diversified funding strategies that will maximize the project’s long‑term economic benefits to the state.”
The scandal comes as California’s ambitious high-speed rail megaproject is facing a critical cash bottleneck and could run out of money by the end of 2027. The California High-Speed Rail Authority’s Inspector General warned the project’s funds will run dry if it doesn’t secure more financing.
The estimated cost of the train project has ballooned to a staggering $231 billion, according to one estimate, with completion now delayed until roughly 2039. However, the rail authority pegs the project cost at $126.3 billion after a reassessment this year.
The project is far from complete since workers broke ground on the project in 2015. Only this year did the ill-fated rail project enter what officials called the “track-laying phase.”
About 119 miles are under active construction with completion now targeted for 2032, though the Office of the Inspector General, in charge of auditing the project, said that goal may be optimistic.
