California’s high-speed rail board approved a controversial business plan as well as a contract worth up to $3.5 billion Monday after Steve Kawa — a longtime political advisor to Gov. Gavin Newsom — was appointed chair of the authority overseeing the bullet train boondoggle.
The California High-Speed Rail Authority Board approved a track-and-systems construction contract without opposition, clearing the way for Kiewit, Stacy Witbeck, Herzog – A Joint Venture to begin work on the multi-phase $3.5 billion project to lay track and install electrical systems across the Central Valley.
Kawa, who served as his chief of staff when Newsom was mayor of San Francisco, takes over the board at a pivotal moment for the long-delayed bullet train, whose cost had ballooned as high as $231 billion if plans hadn’t been altered and scaled back.
The authority successfully pushed through its 2026 business plan despite objections from local officials, with the initial Central Valley segment projected to cost $34.8 billion while the broader “Phase 1” system pegged at $126 billion.
After receiving the gavel, Kawa thanked Newsom for being appointed to the powerful post, which was previously held by Tom Richards.
“I have worked for the governor since the 1990s,” Kawa said. “We have worked on many important issues and programs together. I know how important high speed rail is to him and his belief that this project will result in many benefits and a brighter future for California. I share that belief.”
While the meeting was relatively harmonious, board member Jeffrey Worthe questioned whether the authority was about to lock itself into a massive agreement with a sole bidder on a project already beset by delays, rising costs and doubts over transparency.
“Last month, I was told there’s only one bidder that could bid that project,” Worthe said. “Now we’re going to lock ourselves into a single bidder for $3.5 billion with one bid. … Help me decide why that’s a prudent use of taxpayer dollars. This is not a kitchen remodel, right? I mean, these are massive contracts.”
Staff said the authority received two proposals in a competitive procurement and determined the winning bid was in line with internal cost estimates. But they acknowledged that the price proposal from the rejected bidder was never opened because the company was deemed nonresponsive for not having a California licensed engineer in a prominent staff position.
The new contract authorizes the authority’s CEO, Ian Choudri, to execute an agreement with the joint venture not to exceed $3.5 billion.
Monday’s meeting also exposed lingering tension over the authority’s 2026 business plan, which has already been delayed amid criticism over the project’s soaring price tag and whether the plan meets legal requirements.
Jay Schlosser, executive director of the Kern Council of Governments, urged the board to slow down approval of the plan or at least hold off on the portion affecting Kern County, saying local agencies had not had enough time to evaluate major changes.
“I don’t think the communication leading up to the release of that document was sufficient to capture or address the changes proposed in Kern County,” Schlosser said.
Schlosser said local officials have worked with the authority for roughly two decades, but “broken communication” followed major staff changes and a recent leadership shakeup at the authority.
“In 10 years, no one’s going to remember what I said standing here,” he said. “They’re going to remember what was written in the document.”
State Sen. Tony Strickland (R-Huntington Beach), who serves as vice chair of the Senate Transportation Committee, blasted the board’s decision to move forward on the business plan.
“Putting lipstick on a pig won’t change the trajectory of the high-speed fail that has been overpromised, overspent, and underdelivered from the start,” Strickland said.
“It’s time to rip the Band-Aid off on the high-speed fail. I’m calling on my colleagues to pull the plug and redirect those funds to shovel-ready infrastructure projects across California that would deliver real results for families and businesses.”
Marcus Detweiler, of the California Special Districts Association, warned that the revised business plan still contains “problematic elements” related to tax increment financing and local land-use authority.
Despite the objections, the board voted to send the plan to the Legislature. Officials said the contract will help the state begin track-laying work in 2026 and meet commitments to have infrastructure in place by the end of 2029.
Assemblymember Kate Sanchez (R-Mission Viejo) was one of several elected officials to express skepticism on social media on where high-speed rail is headed with Newsom getting Kawa installed as board chair.
“CA High-Speed Rail: now under NEW management!” Sanchez wrote on X.
“Just one question: Will that finally get a train built, or are we just upgrading the management team on the world’s most expensive group project?”
