Sacramento, California: High-Speed Rail Chief Ian Choudri Resigns, Finance Director Joe Stephenshaw Named Interim CEO

The California High-Speed Rail Authority board named state Finance Director Joe Stephenshaw as interim chief executive on Thursday in Sacramento, one day after Chief Executive Ian Choudri resigned late Wednesday during a two day board meeting.

Choudri said in an emailed resignation obtained by CalMatters that he needs to focus on "important personal and family priorities," and called leading the authority one of the most rewarding chapters of his professional life. Board chair Steve Kawa said the resignation took effect immediately. "Californians deserve a project they can trust, and the governor will continue to insist on that from everybody working on it," Kawa said.

Stephenshaw has led the Department of Finance since Governor Gavin Newsom appointed him in July 2022, after more than a decade in the Legislature and a stint as a senior counselor in the governor's office. He is set to start the interim job on November 3 and leave the finance director post. The board did not say how long he is expected to serve.

A spokesperson for Newsom's office told CBS News Sacramento that the governor is committed to delivering the nation's first high-speed rail system and protecting California taxpayers.

The travel spending probe

Choudri's exit follows a report last month from the authority's Office of Inspector General. It found that $680,500 in consultant travel claims, about 60 percent of the total reviewed, lacked the advance approval state rules require, and that $592,000 of that spending was unallowable. Reimbursements covered premium airfares, upgraded rides, and trips to gyms, escape rooms, cigar lounges, tiki bars and private residences with no documented state business purpose. One legal consultant traveled between Denver and Sacramento 30 times in a year, charging $86,500 in travel time and $40,800 in reimbursements.

Earlier this month the board limited Choudri's contracting authority, requiring in-house legal counsel to sign off on contracts under $25 million, and it had been weighing further discipline, according to a source inside the authority who spoke to CalMatters. Authority staff reported on Wednesday that the consulting firms have repaid nearly $1.3 million.

A project short on time and money

California voters approved a $10 billion bond for the bullet train in 2008, when the San Francisco to Los Angeles line was projected to cost $45 billion and open by 2020. The latest business plan puts Phase 1 at $126 billion to $231 billion. A 171 mile segment between Merced and Bakersfield is under construction, and a full buildout is now expected by 2040. The inspector general warned in July that the agency could run out of cash by December 2027. Under Choudri, the authority lost $4 billion in federal funding after it missed deadlines to buy trains. The state sued over the funding, then dropped the suit in December 2025.

On Wednesday, hours before the resignation became public, the board unanimously approved a $772.1 million contract with Siemens Mobility to design, build and test three seven car trains by 2030, plus up to $63.7 million in import duties. Choudri, hired in August 2024 after decades in transportation engineering that included high-speed rail work in France and Spain, defended his record in his letter, saying he had led the project's turnaround into a successful program. Assembly Republican Leader Alexandra Macedo said a leadership change alone will not fix the project and called for rigorous oversight and more transparency.