The California High-Speed Rail Authority reimbursed four consulting firms nearly $600,000 in questionable travel expenses between June 2024 and April 2026, according to an inspector general report released on September 15, 2026.
Consulting Firms and Expense Breakdown
The reimbursed costs involved KPMG, Nossaman LLP, the AECOM-Fluor Joint Venture, and the SYSTRA/TYPSA Joint Venture. Of more than $2 million in total travel-related costs paid to these firms in this period, $81,000 violated state travel rules, and $543,400 were disallowed under contract terms. The report also found $680,500 in reimbursements lacked required advance approval.
Examples of Questionable Spending
Instances of improper expenses included premium or first-class airfare without required documentation and
premium rideshare trips to unconventional locations. The report cited trips to gyms, night clubs, escape rooms, a cigar lounge in Washington, D.C., and a sushi restaurant in Denver. One luxury rideshare fare for a one-mile trip within downtown Sacramento cost nearly $40. A KPMG consultant booked multiple comfort Uber rides, including travel from home to the airport, airport to the Authority offices, and then to a steakhouse in Folsom, which is more than 25 miles away.
Unauthorized International Travel and Approval Failures
SYSTRA/TYPSA incurred over $118,000 in international travel expenses despite contract provisions explicitly prohibiting such costs. The Authority’s contract managers were responsible for verifying and
approving consultant expenses but often approved questionable charges without documentation or required proof. The report noted authorization of these expenses was influenced by direction from the acting chief counsel at the time, who claimed the travel was requested by the Authority’s CEO, Ian Choudri. However, Choudri does not have the authority to override contract requirements.
Oversight Response and Political Reactions
Inspector General Benjamin Belnap criticized the Authority for insufficient controls and a culture failing to ensure compliance with state laws and contracts. He stated, “To build trust with its stakeholders and the broader public, the Authority—with oversight provided by its Board of Directors—needs to reverse
this broader pattern.” The Authority pledged to strengthen internal controls, implement stricter approval processes, and recover improper costs by March 2027, with the inspector general’s office set to evaluate progress then.
Governor Gavin Newsom’s spokesman Anthony Martinez emphasized the role of the independent Office of Inspector General to maintain transparency and accountability. Assembly Republican Minority Leader Alexandra Macedo criticized the Authority for excessive spending amid the project’s delays and budgets overruns, demanding full reimbursement. State Sen. Dave Cortese called for management accountability and reimbursement of the misused funds. State Sen. Tony Strickland suggested terminating funding for the project and redirecting
money to other state priorities.
Project Cost and Schedule Context
The High-Speed Rail project’s initial segment between Merced and Bakersfield is expected to cost $36 billion and be completed within the next decade. The full Los Angeles to San Francisco route’s cost estimate ranges from $126 billion to $231 billion. The inspector general warned lawmakers that project funding could run out as early as December 2027 without corrective action.
