Ian Choudri, CEO of the California High-Speed Rail Authority, has resigned after a series of controversies involving the project.
During a Thursday board meeting, High-Speed Rail Board Chair Steve Kawa confirmed that Choudri resigned Wednesday night for personal and family reasons. His resignation is effective immediately.
Kawa also announced that Joe Stephenshaw, who has been the director of the Department of Finance, is stepping in as interim CEO.
A spokesperson for Gov. Gavin Newsom issued the following statement in response to this development.
“The Governor is committed to delivering the nation’s first high-speed rail system and to protecting California taxpayers every single step of the way. That’s why he brought fresh leadership onto the High-Speed Rail Authority Board this year, with a clear charge to demand accountability for every dollar and transparency the public can count on. The Governor welcomes today’s announcements as an important step in that direction.
“Joe Stephenshaw has spent the last four years guarding the state’s budget as Director of Finance. The Governor is grateful for that service and confident Joe is the right person to oversee the Authority in the interim. With thousands of workers on the job across the Central Valley every day and major milestones ahead, this project keeps moving forward.”
This comes weeks after the High-Speed Rail Board voted to limit Choudri’s spending power in response to questionable travel expenses using taxpayer money.
Also recently, the California Rural Legal Assistance threatened legal action against the High-Speed Rail Authority for allegedly violating state law by rerouting part of the tracks without prior approval from the California Legislature.
The beleaguered high-speed rail project was intended to stretch from Southern California to the Bay Area, cost significantly less and be completed sooner. However, it’s been setback after setback for the project, with the Bakersfield-to-Merced line projected to cost $36 billion and an anticipated completion time of 2033.
Transparency has also been an issue when KCRA 3 has asked for updates on the project.
Choudri was making about half a million dollars as CEO.
According to the High-Speed Rail Authority, California taxpayers between 2024 and 2026 spent more than $250 million total on the four consulting firms at the center of the questionable travel expenses investigation, KPMG, Nossaman LLP, Systra-Typsa, and AECOM-Fluor. The Inspector General’s report analyzed less than $2 million of the spending.
The board expects the consulting firms to pay the state back for the impermissible expenses identified in the Inspector General’s report.
Xavier Becerra, a candidate running for California governor, told KCRA 3 before the resignation that he would have likely removed Choudri from his CEO position if elected.
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