Ian Choudri, CEO of the California High-Speed Rail Authority, has resigned after a series of controversies surrounding the project.
At a board meeting on Thursday, high-speed rail board chairman Steve Kawa confirmed that Choudri resigned Wednesday evening due to personal and family reasons. His resignation takes effect immediately.
Kawa also announced that Joe Stephenshaw, who was director of the Ministry of Finance, would take over as interim CEO.
A spokesperson for Governor Gavin Newsom released the following statement in response to this development.
“The Governor is committed to building the nation’s first high-speed rail system and protecting California taxpayers every step of the way. That’s why he appointed new leadership to 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 overseeing the state budget as Finance Director. The Governor is grateful for this service and is confident that Joe is the right person to oversee the Authority in the meantime. With thousands of workers on the job every day across the Central Valley and major milestones ahead, this project continues to move forward.”
This comes weeks after the High Speed Rail Board voted to limit Choudri’s purchasing power in response to questionable travel expenses using taxpayer money.
Also recently, California Rural Legal Assistance threatened legal action against the High-Speed Rail Authority for allegedly violating state law by rerouting a portion of the tracks without prior approval from the California Legislature.
The troubled high-speed rail project was intended to stretch from Southern California to the Bay Area, cost much less and be completed sooner. However, the project has faced setback after setback, with the Bakersfield-Merced line expected to cost $36 billion and expected to be completed in 2033.
Transparency was also an issue when KCRA 3 requested updates on the project.
Choudri earned about half a million dollars as CEO.
According to the High-Speed Rail Authority, California taxpayers spent between 2024 and 2026 more than $250 million in total on the four consulting firms at the center of the questionable travel expense investigation, KPMG, Nossaman LLP, Systra-Typsa and AECOM-Fluor. The Inspector General’s report analyzed less than $2 million in spending.
The board expects consulting firms to reimburse the state for impermissible expenses identified in the inspector general’s report.
California gubernatorial candidate Xavier Becerra told KCRA 3 before his resignation that he probably would have removed Choudri as CEO if he had been elected.
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