California high-speed rail project paid out more than $1 million for travel: IG Report

The High-Speed Rail Authority paid more than $1 million in unjustified travel expenses for contractors, including for private jets, premium tickets and cigar lounges, according to a report.

The report, which details the findings of an investigation by the High-Speed Rail Authority’s Office of the Inspector General, shows that between fiscal years 2024-25 and 2025-26, $680,500 was paid to contractors for travel expenses without prior approval for that travel. The report also shows that there was often little or no explanation of why the travel was necessary, with vague reasons being given for travel. This included “meeting with [high-speed rail] executives” or oftentimes detailed reasons unrelated to the work for the contract.

Among the findings in the Office of the Inspector General’s report, an additional $543,400 in travel expense payments was determined to be disallowed under the terms of the contract, including international and out-of-state travel. There were also expenses related to rideshares to the gym, premium airfare, expenses related to flying a private jet between Washington, D.C. and California, and rideshare trips to cigar lounges, escape rooms and various private residences in California and Washington, D.C.

“During our investigation we observed a pattern of Authority noncompliance with state travel regulations and contract terms,” the Office of the Inspector General said in its report. “Paying for travel when it is not necessary or when it exceeds what is allowed by state regulations or the contract terms is a waste of public funds.”

The four contractors included in the investigation were a financial and commercial advisory services contractor, a legal services contractor, a program delivery support contractor and a track and overhead contact system design contractor. The names of the contractors were not included in the report.

Overall, more than $2 million in travel payments were made to those contractors. Only about $1.15 million was included in the investigation, according to the report.

California lawmakers reacted to the findings in that report this week, telling The Center Square that those dollars should be reimbursed to the High-Speed Rail Authority.

“I will not tolerate unauthorized travel expenses by professional consultants,” Sen. Dave Cortese, D-San Jose and chair of the Senate Transportation Committee told The Center Square via remarks sent from his office on Thursday. “Consultants should expect that when they make an executive decision to travel without authorization, that they’re taking on the expense themselves. I will be formally requesting reimbursement to the authority of the dollars in questions in the days ahead.”

Sen. Tony Strickland, R-Huntington Beach and vice chair of the Senate Transportation Committee, told The Center Square on Thursday that he wants to see funding completely cut off from the High-Speed Rail project.

“This will go down in history as the worst public project in world history,” Strickland told The Center Square. “The mismanagement has been dramatic over a long period of time. It’s not shocking that now they’ve uncovered wasteful, unaccountable spending.”

Recommendations in the report included enforcing regulations related to allowable travel expenses, enforce contract requirements regarding travel, updating the High-Speed Rail Authority’s travel policy and establishing a uniform travel request.

The High-Speed Rail Authority said in a comment sent to The Center Square on Thursday that the agency was working to enact the Office of the Inspector General's recommendations.

“The Authority appreciates the Office of the Inspector General’s oversight and remains committed to transparency and continuous improvements as we build the nation's first high-speed rail system,” the agency said through a spokesperson, Matt Rocco. “We take these findings seriously. In response, the Authority will strengthen internal controls around consultant travel, implement more rigorous documentation and approval requirements, and recover any improper costs identified. We are also working closely with the OIG to ensure corrective action that is both accurate and fair.”

According to previous reporting by The Center Square, the High-Speed Rail Authority previously discussed the $126.2 billion projected price tag of California’s most expensive public works project. Much of the cost of the project – so far amounting to $15.7 billion – is well over the $9.95 billion bond California voters approved in November 2008.

The project was supposed to be completed in 2020. As of June 2025, no track had been laid.