The California High-Speed Rail Authority (CHSRA) reimbursed outside consultants for travel expenses including late-night rides to the private residence of the agency's CEO, according to records obtained by CBS California. These findings follow a September 2026 report from the High-Speed Rail inspector general that identified nearly $600,000 in unallowable or poorly justified travel expenses.
The inspector general’s audit reviewed $1.15 million of the more than $2 million in travel claims submitted by four major contractors: KPMG, Nossaman LLP, AECOM-Fluor, and SYSTRA/TYPSA. The watchdog found that approximately 60% of reviewed payments were made without advance approval. Questionable expenses documented in the report included visits to tiki bars, nightclubs, gyms, and an escape room, as well as first-class flight upgrades and international travel barred by contract terms.
Specific receipts show Denver attorney Brent Butzin of Nossaman LLP and KPMG managing director Thierry Prate expensed a dozen rideshare trips to or from the Folsom residence of CEO Ian Choudri. Records also show a dozen rides to nearby restaurants and bars, with some pickups occurring after 1 a.m. While one email from KPMG described a trip as "related to work with Ian," the inspector general found the agency repeatedly failed to document a legitimate business purpose for such travel. In one instance, a $94.39 Uber Eats pizza delivery to the CEO's home was submitted for reimbursement, though the agency eventually disputed and did not pay the charge.
The daily impact on the project is reflected in its shifting timeline and budget. Originally approved by voters in 2008 with a $33 billion budget and a 2020 completion date, the project's estimated cost has risen to at least $126.3 billion, with some estimates reaching $231 billion. The inspector general warned in July 2026 that the agency could run out of cash as early as December 2027 if it does not secure new financing. Federal officials recently withdrew $4 billion in funding, citing missed deadlines.
The High-Speed Rail Authority board met on October 9, 2026, to discuss the audit. Agency officials stated they are tightening oversight, requiring new training, and will only reimburse pre-approved travel that fits state regulations. KPMG stated it is reviewing expenses and will reimburse the state as appropriate. The inspector general's office plans to conduct a follow-up evaluation after March 2027 to ensure the agency has adopted recommendations for better internal controls. Moving forward, the agency has committed to issuing a memo regarding travel expectations by February 2027.