Make California Post a Preferred Source The new boss of California’s beleaguered $231 billion bullet train says he knows the money is tight and plans to keep a close eye on every dollar.
Joe Stephenshaw, who took over the California High-Speed Rail Authority after former CEO Ian Choudri suddenly resigned last month, laid out his plans for the troubled project in an interview with KCRA 3’s “CA Politics 360.”
Stephenshaw spoke while standing at the project’s largest structure built so far. He comes to the post from the California Department of Finance, which he ran as director.
He said his years with the state’s books make him the right fit for a project that has spent more than a decade bleeding cash.
“Some of the challenges that the authority faces are things that I think I do have the experience and skillset to help provide that value that’s needed right now,” he said. “I think that’s the reason why I was asked to do this and a reason why I agreed to do it.”
Before he led the finance department, Stephenshaw was a senior counselor on infrastructure and fiscal affairs in Gov. Gavin Newsom’s office.
From 2017 to 2022 he was staff director for the state Senate Budget and Fiscal Review Committee, according to Mass Transit magazine.
The authority’s board named him interim CEO, and Newsom’s office called him “the right person to oversee the Authority in the interim.”
“I have experience running a state organization on the state staff side, similar in size to the authority. I obviously also have a lot of experience understanding the state’s finances and state’s budget in particular, not only in my prior role but in my roles in the legislature as well,” Stephenshaw told KCRA.
He said his top two priorities are cleaning up the books and finding more money.
“Number one, it’s about ensuring that there’s accountability and transparency for this project. And then number two, we know the financing is a significant issue, if not the most significant issue, that needs to be addressed going forward,” he said. “I am in a place, obviously, to lead those conversations with not only the incoming administration but also the legislature.”
The clock is ticking: The high-speed rail auditor has warned the project could run out of cash as soon as December 2027.
Stephenshaw did not deny it. He said the date depends on how the authority spends what it has. For now, he said, the authority is concentrating on finishing the first stretch of the line.
As for where the money will come from, Stephenshaw pointed to the roughly $1 billion a year the project gets from the state’s general fund.
“We’re going to work to maintain that, and then, with that and with the resources that we have at hand right now, we have to manage,” he said. “Beyond that, we are going to explore strategies for additional funding for the project going forward.”
Stephenshaw still believes the long-promised Los Angeles-to-Bay Area train will happen eventually. Plenty of Californians don’t share his confidence.
Stephenshaw replaces Choudri, who quit in late October after a stint marred by scandal.
Choudri took a leave of absence in February after police arrested him on suspicion of domestic violence over a dispute involving his wife and daughter. The Sacramento County District Attorney’s Office declined to prosecute.
An Inspector General audit also found the rail authority paid out $592,900 in “unallowable” expenses run up by consultants. The list included rideshare trips to Tiki bars, an escape room and first-class flight upgrades, the California Post previously reported.
Choudri had been facing disciplinary action, including possible termination, over the misspent money. His compensation had been set at more than $534,000 this year, and the board had been due to discuss whether he qualified for a $25,000 performance bonus.
On his way out, Choudri insisted he left the project better than he found it. “I took on a project facing significant challenges and serious questions about its prospects for success, and led its turnaround into a successful program,” he wrote in his resignation email.
Since then it has been dogged by soaring costs and missed deadlines. The authority now estimates the project will cost between $126 billion and $231 billion.
In July 2025 the Trump administration pulled $4 billion in federal funding, citing the project’s slow progress and huge cost, branding it the “Train to Nowhere.” The authority hopes private investors will fill the gap.
Stephenshaw will now have to answer to Gov.-elect Xavier Becerra. The Democrat beat Republican Steve Hilton on Nov. 3 with nearly 60% of the vote, according to the Associated Press.
During the campaign, Becerra said he would have fired Choudri.
“There’s going to be a new sheriff in town,” he told KCRA. “I need to gain the confidence of the public; I can’t gain it if I keep the same characters in place.”
Hilton wanted to go further. He vowed to scrap the project entirely and replace it with a “Government Failures National Monument.”
The California Post has reached out to the California High-Speed Rail Authority and Becerra’s transition team for comment.
California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedInCalifornia Post Sports Facebook, Instagram, TikTok, YouTube, XCalifornia Post Opinion California Post Newsletters: Sign up here!California Post App: Download here!Home delivery: Sign up here!Page Six Hollywood: Sign up here!
