California GOP lawmakers seek probe on wasteful high-speed rail consultant reimbursements
California Republican legislators are demanding an investigation into payments by state's high-speed rail project to consultants that a state watchdog last week called "wasteful and unallowable."
In a letter to Attorney General Rob Bonta on Tuesday, Assembly Minority Leader Alexandra Macedo (R-Tulare) and other GOP lawmakers called for a probe into the California High-Speed Rail Authority's reimbursements to consultants for items such as first-class flights, trips to gyms and bars, and premium rideshares.
A report by the CHSRA's Office of the Inspector General found that the authority paid out $543,000 in unallowable travel expenses to four consulting firms between 2024 and 2026. The report found a "pattern of Authority noncompliance" with contracting laws that was not only a "waste of public funds," but also "inconsistent with the Authority's role as the steward of public resources."
The letter, also signed by state Senate Minority Leader Brian Jones (R-San Diego) and 17 other Republican legislators, called on Bonta to examine whether the payments violate the California False Claims Act, which prohibits payment of reimbursement claims "in deliberate ignorance" or "reckless disregard" of the truth.
According to the OIG report, "the Authority's CEO or another member of its executive team wanted the travel to take place" and ordered the payments "over objections" raised by Authority staff.
"California families can barely pay their rent," Macedo said in a prepared statement. "It is unconscionable that private consultants are living the life of luxury at taxpayers' expense with no identifiable state purpose."
The letter urged the Attorney General to investigate whether CHSRA executives violated criminal laws, including the misappropriation of public funds, and recover any taxpayer funds where appropriate.
A CHRSA spokesperson said it was strengthening internal controls around consultant travel and would recover any improper costs identified. The OIG report also stated that the authority had committed to implemented some of the corrective actions recommended in the report, but disagreed with other actions, including the need to explain why consultant work must be in-person versus remote.
In July, the OIG warned that California's high-speed rail project, plagued by years-long delays and cost overruns, could run out of money as soon as December 2027 unless the state borrows billions to keep construction on schedule. A CBS California Investigation also showed that the CHSRA missed multiple deadlines to buy trains at the center of a federal funding fight, and later dropped its lawsuit against the Trump administration after missing its own revised deadline.
