California high-speed rail CEO Ian Choudri resigns; finance chief named interim head

Right · 1Ian Choudri, chief executive of the California High-Speed Rail Authority, resigned on Wednesday 28 October, according to CalMatters as relayed by the New York Post. 1 2 Right · 2In a memo he cited "important personal and family priorities" and said leading the Authority had been "one of the most meaningful and rewarding chapters of my professional life". 3 4 Right · 1The authority's board named Joe Stephenshaw, director of the state Department of Finance since 2022 and previously a senior counselor to Gov. Gavin Newsom, as interim CEO at a Thursday meeting. The board did not say how long he is expected to serve. 2

Right · 1Newsom's office said Stephenshaw had spent four years guarding the state budget and that it was confident he was the right person to oversee the Authority in the interim. 4 Right · 2Board chair Steve Kawa thanked Choudri for his service and said the news reflected the board's commitment to accountability and transparency, consistent with the governor's mandate. He added: "Californians deserve a project they can trust." 2 3 Right · 2The departure followed a state audit. The New York Post cites an Inspector General audit finding that the authority paid $592,900 in "unallowable" consultant expenses, including rideshares to tiki bars and an escape room and first-class upgrades. Breitbart, citing state investigators, adds that some trips went to a nightclub and cigar lounge, many to Folsom, where Choudri has a home, sometimes at his request. 4 3

Right · 2Earlier in October the board voted to limit Choudri's contracting authority, requiring in-house legal counsel to sign off on contracts under $25 million. It had reportedly been weighing his firing for weeks, and the New York Post says he faced possible termination. 3 4 Right · 1Other background reported: Choudri took a leave of absence in February after being arrested on suspicion of domestic violence over a family dispute, and the Sacramento County District Attorney's Office declined to prosecute. His 2026 pay was set at over $534,000. 4 Right · 2The project's status is described as troubled. Breitbart, quoting the New York Times, says crews have broken ground on one 119-mile section of roughly 500 planned miles. Under Choudri the authority lost $4 billion in federal funding after missing deadlines, and the state dropped its lawsuit over that in December 2025 and turned to private investors, per CalMatters. The New York Post says the cost is expected to be $126 billion to $231 billion and that money runs out in 2027. 3 4

Centre · 1Newsweek reports the resignation prompted renewed calls to scrap the project. Republican state Senator Tony Strickland said it was time to "pull the plug on the high-speed fail", and Republican gubernatorial candidate Steve Hilton pledged to scrap the project on "day one" if elected. 5 Centre · 1Democratic candidate Xavier Becerra said in an interview aired hours before the departure that the authority "going to have to look really different" if the project continues. A spokesperson for Newsom, who has publicly supported the railway, said the governor welcomed the announcements as an important step toward accountability. 5 Mixed · 2Kawa also said the board had authorised the purchase of the first three trainsets at the meeting and expected to begin laying track in a few months. In an opinion piece, the Washington Examiner argued the resignation would not save the project, citing the state inspector general's estimate that at least $108 billion more is needed on top of $18 billion already spent, and that Democrats could have removed Choudri sooner. 5 6