Train Wreck: California High-Speed Rail CEO Ian Choudri Resigns After Travel-Spending Scandal
- His departure came weeks after the rail authority’s board stripped him of his ability to manage contracts.
Ian Choudri resigned as CEO of the California High-Speed Rail Authority late Wednesday, ending a two-year tenure marked by delays, funding losses and, most recently, an inspector general’s finding of improper travel spending by agency consultants.
In an emailed resignation obtained by CalMatters, Choudri cited the need to focus on “important personal and family priorities.” The resignation took effect immediately. The authority’s board confirmed it Thursday on the final day of a two-day meeting in Anaheim, according to Fox40. According to news reports, the board appointed Joe Stephenshaw, director of the California Department of Finance, as interim leader.
His departure came weeks after the board stripped him of his ability to manage contracts. The Daily Journal reported that the board voted 7-2 on Oct. 9 to revoke his authority to approve contracts under $25 million without stricter oversight.
The vote followed a September report by the authority’s inspector general. CalMatters reported that the investigation reviewed $1.15 million of more than $2 million in travel reimbursements to four outside consulting firms between 2024 and 2026, and found the authority approved at least $685,000 of those payments without first approving the travel. KION reported that $592,000 was deemed unallowable under state regulations or the consultants’ contracts. According to CalMatters, the questionable destinations included gyms, a nightclub, an escape room, a tiki bar and a cigar lounge.
An authority spokesperson said in a written statement that the agency “takes these findings seriously” and would work with the inspector general’s office to fix the issues. Gov. Gavin Newsom said in a statement that he welcomed the resignation as a step toward accountability and transparency.
Political Pressure
Assembly Minority Leader Alexandra Macedo, R-Tulare, had publicly called on Choudri to resign over the spending. The resignation also came hours after KCRA reported that gubernatorial frontrunner Xavier Becerra would likely remove him if elected.
The San Francisco Standard reported that the agency missed key deadlines to buy trains during Choudri’s tenure, leading federal officials to pull $4 billion in funding in 2025. The authority’s inspector general warned in a July 31 report that the agency could run out of money by December 2027. The San Francisco Chronicle put the project’s cost at $126 billion. Voters first approved the project in 2008, and it has not yet laid any track, according to the SJV Sun.
In February, Choudri took a brief leave of absence after an arrest on suspicion of domestic battery. The SJV Sun reported that the Sacramento County District Attorney’s Office said there was insufficient evidence to file charges. The authority said at the time that he had told its board he was not aware of any evidence of wrongdoing.
Trains.com reported that when the board named him CEO on Aug. 8, 2024, he was a senior vice president at the consulting firm HNTB, with more than 30 years in transportation, including work on high-speed rail projects in France and Spain. He succeeded Brian Kelly, who had led the agency for six years.