California High-Speed Rail Authority’s inspector general flagged over $2 million in consultant travel costs that did not comply with state rules or contract requirements. A July 31 report said the authority may run out of money by December 2027.
The OIG cited travel to destinations that appeared unrelated to state business, trips originating outside consultants’ approved offices, and upgraded ride-share rides and flights among the unallowable or questionable expenses. On Sept. 22, Republican lawmakers asked Attorney General Rob Bonta to investigate the spending and whether authority executives violated criminal statutes.
The authority is asking the California Department of Finance to find a way to borrow against $20 billion expected from the state’s cap-and-invest program, due to be disbursed at $1 billion a year through 2046. It cut the Merced-Bakersfield segment’s scope to reduce costs; Merced’s city and county said the revised 2026 plan would move the station out of downtown, eliminating a planned connection among high-speed rail, Amtrak and the Altamont Corridor Express and creating new infrastructure and connectivity needs. The authority projected passenger revenue would cover 45% to 74% of operating and maintenance costs once the segment opens.
