California's $128 Billion High-Speed Rail Project Faces Setbacks

CEO steps down amid domestic violence allegations as project costs continue to balloon

Published on Feb. 21, 2026

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California's high-speed rail project, originally estimated to cost $33 billion, has now ballooned to an estimated $128 billion, nearly quadrupling the original projection. The project has faced numerous delays, missed benchmarks, and now the departure of its CEO, Ian Choudri, following an arrest tied to an alleged domestic violence incident. The project's governance structure has been criticized for incentivizing spending over results, with progress measured more by funding secured than miles of rail completed.

Why it matters

The high-speed rail project represents a major infrastructure initiative for California, with the potential to transform transportation and reduce environmental impact. However, the spiraling costs and lack of tangible progress have raised concerns about government competence and the ability to effectively manage large-scale public works projects. The project's challenges also have broader implications for national infrastructure debates and public trust in government.

The details

Choudri voluntarily took leave from his position as CEO of the California High-Speed Rail Authority while an internal review proceeds. The authority emphasized its commitment to 'transparency and accountability.' However, the real issue goes beyond Choudri's departure, as the project has been plagued by mismanagement, missed deadlines, and ever-increasing costs. The Federal Railroad Administration has even canceled $4 billion in grants previously allocated to the project, citing concerns over its governance and lack of progress.

  • The California high-speed rail project was approved by voters in 2008 with an original estimated cost of $33 billion.
  • The current estimated cost of the project has ballooned to $128 billion, nearly quadrupling the original projection.
  • In February 2026, the CEO of the California High-Speed Rail Authority, Ian Choudri, stepped down following an arrest tied to an alleged domestic violence incident.

The players

Ian Choudri

The former CEO of the California High-Speed Rail Authority who stepped down following an arrest tied to an alleged domestic violence incident.

Gavin Newsom

The political figure most closely associated with California's modern governing philosophy, which has been criticized for ambitious announcements without considering logistical feasibility.

California High-Speed Rail Authority

The state agency overseeing the high-speed rail project, which has emphasized its commitment to 'transparency and accountability' amid the project's challenges.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The California High-Speed Rail Authority will conduct an internal review following the departure of CEO Ian Choudri.

The takeaway

The challenges facing California's high-speed rail project highlight the broader issues of government competence, accountability, and the ability to effectively manage large-scale public works projects. The project's spiraling costs and lack of tangible progress have eroded public trust and raised concerns about the viability of such ambitious infrastructure initiatives.