The incoming leader of California’s troubled $231 billion high-speed rail project says he understands the program’s financial strain and intends to scrutinize every dollar it spends.
Joe Stephenshaw assumed leadership of the California High-Speed Rail Authority after former CEO Ian Choudri abruptly resigned last month. In an interview with KCRA 3’s “CA Politics 360,” Stephenshaw outlined his priorities for the long-delayed project.
Stephenshaw spoke from the site of the project’s largest completed structure to date. He joined the rail authority after serving as director of the California Department of Finance.
He said his background overseeing the state’s finances has prepared him to help guide a project that has consumed billions of dollars over more than a decade.
“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 taking charge of the finance department, Stephenshaw served as a senior adviser to Gov. Gavin Newsom on infrastructure and fiscal policy.
He was staff director of the state Senate Budget and Fiscal Review Committee from 2017 through 2022, according to Mass Transit magazine.
The authority’s board appointed Stephenshaw interim CEO, while Newsom’s office described him as “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 identified two immediate goals: bringing greater order to the project’s finances and securing additional funding.
“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 project faces a growing financial deadline. California’s high-speed rail auditor has warned that the authority could run out of money as early as December 2027.
Stephenshaw did not dispute that projection, saying the timing will depend on how quickly the authority uses its existing funds. For now, he said, officials are focused on completing the first segment of the rail line.
When asked how the project will be financed, Stephenshaw cited the approximately $1 billion it receives each year from California’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 remains convinced that the long-promised rail connection between Los Angeles and the Bay Area will eventually be built. Many Californians, however, remain skeptical.
He succeeds Choudri, whose tenure ended in late October after a series of controversies.
Choudri took a leave of absence in February after police arrested him on suspicion of domestic violence following a dispute involving his wife and daughter. The Sacramento County District Attorney’s Office later declined to bring charges.
A state Inspector General’s audit also determined that consultants had received $592,900 in “unallowable” expenses. The costs included rideshare trips to Tiki bars, an escape room and first-class airline upgrades, as previously reported by the California Post.
Choudri faced possible disciplinary action, including termination, over the questionable spending. His compensation was set to exceed $534,000 this year, and the board was scheduled to consider whether he qualified for a $25,000 performance bonus.
In his resignation email, Choudri maintained that he was leaving the project in better condition 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.
California voters approved the rail project in 2008.
Since then, the program has been plagued by escalating costs and repeated delays. The authority now projects that the full system could cost between $126 billion and $231 billion.
In July 2025, the Trump administration withdrew $4 billion in federal funding, pointing to the project’s slow progress and enormous price tag and labeling it the “Train to Nowhere.” The authority is hoping private investment can help close the funding gap.
Stephenshaw will ultimately report to Gov.-elect Xavier Becerra. The Democrat defeated 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 dismissed 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 proposed a more sweeping change, pledging to cancel the rail project and turn the site into a “Government Failures National Monument.”
The California Post has contacted the California High-Speed Rail Authority and Becerra’s transition team for comment.