The California High-Speed Rail Authority has come under scrutiny for misusing taxpayer funds on dubious travel expenses for consultants, according to a report from the project’s inspector general. The investigation found that the Authority violated state rules and contractual obligations, leading to over $543,000 in unallowable spending.
The four consulting firms involved—KPMG, Nossaman LLP, AECOM-Flour Joint Venture, and SYSTRA/TYPSA Joint Venture—had their travel costs reimbursed by the Authority while engaging in questionable practices. Examples of misuse include first-class airfare without proper documentation and premium rides to non-work-related destinations such as nightclubs and gyms.
Between June 2024 and April 2026, the Authority spent over $2 million on travel for these firms, of which $680,500 lacked prior approval. The inspector general criticized the Authority for inadequate oversight and failure to verify the necessity and compliance of travel costs.
In response to the findings, the Authority plans to tighten internal controls and implement updated travel policies by March 2027, while also working with the inspector general on corrective actions.
