California rail authority reimbursed consultants $685,500 for Uber, bars, gyms

September 20, 2026 at 02:05 AM2 min

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California's High Speed Rail Authority reimbursed consultants nearly $600,000 for travel expenses including Uber rides to bars, gyms, and an escape room over two years, an inspector general investigation found. The authority approved at least $685,500 in payments to four consulting firms without first approving travel and expenses. The original $33 billion project has ballooned to $126 billion with no tracks laid.

Key Facts

The inspector general found the HSRA reimbursed nearly $600,000 in taxpayer funds for consultant travel expenses over two years.
The authority approved at least $685,500 in payments to four consulting firms without first approving travel and expenses.
The original $33 billion budget has ballooned to $126 billion, and no tracks have been laid.
The HSRA reimbursed $118,000 in international travel despite contracts explicitly barring it.
A bill to strengthen inspector general oversight is due for Governor Gavin Newsom's approval or veto by September 30.

Investigation Findings

The office of the inspector general of California's high-speed rail released an investigation on Tuesday detailing the reimbursements. The HSRA greenlit at least $685,500 in payments to four consulting firms without first approving travel and expenses. The consulting firms included KPMG LLP, AECOM-Fluor Joint Venture, and SYSTRA/TYPSA Joint Venture. None of the firms responded to CalMatters' requests for comment.

Expense Examples

Reimbursements included premium Uber rides to and from a restaurant, bar, and nightclub between 9:40 p.m. and 2:30 a.m. Consultants made repeated trips to Planet Fitness gyms even after a supervisor wrote that 'the state does not cover ride share to gyms.' The HSRA reimbursed $118,000 in international travel despite contracts explicitly barring it. The inspector general's office made several recommendations to help the HSRA enforce its travel and expense policies.

Oversight and Next Steps

A bill that would strengthen the inspector general's oversight of the HSRA is due to get Governor Gavin Newsom's approval or veto by September 30. The authority insisted it didn't need to justify each consultant's trip, prompting the inspector general to reply: 'We explained to the Authority that this interpretation is fundamentally incorrect.' The office will conduct another evaluation of the HSRA's finances after next March.