Ian Choudri resigned as CEO of the California High-Speed Rail Authority on Oct. 28, citing “personal and family priorities” in a letter to the authority, according to the Los Angeles Times. Choudri had led the agency since August 2024.
The departure follows heightened scrutiny of the authority’s spending and contracting practices. A Sept. 15 report by the authority’s Office of the Inspector General found that more than $2 million in consultant travel-related payments did not comply with state regulations and contract requirements, including over $595,000 in unallowable expenses.
In October, the authority’s board removed the CEO’s power to authorize and oversee contracts valued below $25 million. It also required the agency’s in-house attorneys to approve or modify new and existing contracts, according to CalMatters. Contracts exceeding $25 million already required board approval.
The project continues to face significant financial uncertainty. The Trump administration canceled approximately $4 billion in unspent federal grants previously awarded to the project last year. Beyond funds already available, the authority’s only guaranteed funding source is California’s commitment to provide $1 billion annually through the state’s cap-and-invest program until 2045.
Allowing the authority to issue bonds against that projected income could make the money available sooner, but would add interest costs. The authority’s 2026 business plan estimates those costs at $3.6 billion, while the Inspector General’s office has said they could reach $6.6 billion.
Despite the uncertainty, the authority awarded Siemens Mobility a $772 million contract on Friday. The agreement covers three high-speed train sets, spare parts, 10 years of maintenance and provisions for cost escalation, foreign exchange rates, taxes and other expenses. A July 31 Inspector General’s report warned that the authority could run out of money by December 2027.
The project will also face a new governor next year. Democrat Xavier Becerra leads Republican Steve Hilton among likely voters, 61% to 34%, according to the Los Angeles Times. Becerra supports high-speed rail but told KCRA that the project “has got to look really different” to continue, adding that it must regain public confidence.
Choudri had been working to attract private investment. In June, the authority signed a co-development agreement with a consortium of high-speed rail, infrastructure and investment companies. The agreement is valued at $25 million and has an initial term of 30 months.
The authority’s board appointed Joe Stephenshaw, director of the California Department of Finance, as interim CEO on Oct. 29.
Sources: Smart Cities Dive.