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Monday, October 19, 2026Bay Area Market: Coverage updated daily

California high-speed rail consultants flew first-class, visited bars and a nightclub on taxpayers’ money

California’s High-Speed Rail Authority paid nearly $600,000 in unallowable travel reimbursements to outside consultants while keeping a poor record to justify them, a state investigation found.

Silicon Valley and Bay Area real estate
Curated News BriefBased on original reporting by CalMatters Housing (September 15, 2026). The summary below is the Journal’s; the local analysis is original commentary by Omar Murillo.

According to CalMatters Housing, California's High-Speed Rail Authority has been reimbursing outside consultants nearly $600,000 for travel expenses that shouldn't have been approved in the first place. An investigation by the state's inspector general uncovered that consultants were getting paid for trips to locations like nightclubs, escape rooms, tiki bars, and cigar lounges, along with first-class airfare and even private plane rides, all charged to taxpayers. The report makes clear that the real issue isn't necessarily why consultants visited these spots, but that the Authority paid for their transportation to these places without questioning whether it was legitimate business.

The investigation looked at just over $1 million in travel reimbursements to four major consulting firms between 2024 and 2026, and found that roughly $600,000 of that violated state policies or contract terms. The Authority approved at least $685,000 in expenses without even getting approval first, sometimes not even knowing about the trips until invoices showed up. Even when travel was approved, the agency failed to properly vet requests or keep good documentation. One consultant alone racked up $127,300 in travel costs for thirty trips between Denver and Sacramento in a single year, mostly with vague justifications like attending executive meetings that could have been held remotely.

The High-Speed Rail Authority's response shows they're taking the findings seriously and promising to tighten up their controls. They've agreed to strengthen approval requirements, implement better documentation practices, and recover any improper costs. However, when the inspector general recommended that the Authority justify each individual trip, the Authority pushed back, leading the inspector general to tell them they were fundamentally misunderstanding the requirement. The Authority has until March 2027 to adopt several of the inspector general's recommendations, and another evaluation will follow.

This investigation adds to the mounting troubles at the High-Speed Rail Authority, which already faces serious questions about its financial health. The inspector general warned in a previous report that the agency could run out of money by the end of 2027, which threatens its ability to complete even the scaled-back segment it's currently working on between Merced and Bakersfield. The whole project has ballooned from a $33 billion plan approved by voters in 2008 to at least $126 billion, and not a single track has been laid yet.

What I am seeing locally is that this kind of story doesn't help public confidence in major infrastructure projects, especially ones that Bay Area residents have been invested in for over a decade. When consultants are flying around first-class and the Authority isn't even tracking where their money is going, it makes people skeptical about whether their tax dollars are being spent responsibly. East Bay communities and buyers who've been patient with the promises around this project have every right to ask harder questions about oversight and accountability as things move forward.