High-Speed Rail board elects Steve Kawa chair, approves KSWH JV track-and-systems contract and adopts 2026 business plan

The California High‑Speed Rail Authority Board of Directors elected Steve Kawa as board chair and, in separate unanimous actions by the members present, authorized a major track-and-systems construction contract and adopted the Authority———2026 business plan at its June 1 meeting.

The board voted to authorize the CEO to execute a not-to-exceed $3.5 billion contract with KSWH JV and to issue notices to proceed for Package 1B (design development and preconstruction work, $118 million) and Package 2 (CP 4 track, civil and overhead contact system construction, $260 million). "The staff is recommending that the board authorize the CEO to award and execute the contract for the track and systems construction to KSWH JV, in the amount of not to exceed $3.5 billion," Authority staff member Edward Fenn told the board during the presentation of the procurement.

The vote to move forward with contract execution came after staff described the procurement process. Fenn said the RFP generated two proposals; one proposer was deemed non‑responsive under the RFP———requirements and the Authority determined KSWH JV the responsive offeror. Chief Counsel Christine Ciccotti told the board the lone protest was dismissed by the Authority's protest official and, "the protest was denied on Friday, so there is no impact. We can move forward to contract execution and issuance of NTPs," she said.

Directors pressed staff on market competition, single-bidder risk and contract management. Director Jeffrey Worthe noted that only one proposer remained responsive and asked how the Authority would ensure reasonable pricing in future packages. Fenn described an "open book" process for future notices to proceed and unit-price schedules that staff will use to validate costs; CEO Ian Choudri said the phased NTP structure and competitive OEM procurements provide visibility and potential off-ramps if pricing is not fair.

On the business plan, Chief of Staff Mark Tollefson presented the final 2026 document as a phased blueprint for moving from civil construction to operating service. He told the board the Merced–Bakersfield segment———which is the focus of current funding and work———was estimated in the plan at about $35.7 billion and that the Authority has identified approximately $14 billion of savings since last year's project update. "This is a turning point," Chair Kawa said in opening remarks, calling the two actions before the board the moment the program begins "to become a railroad."

The business plan also emphasizes ancillary revenue opportunities (power corridors, broadband, co-development) as part of long-term financial sustainability. During discussion, directors and members of the public raised concerns about proposed revenue strategies tied to land use, including tax-increment financing and other value capture tools. Director Jason Elliott asked whether the plan assumed tax-increment financing; staff clarified that the capital funding table presented to the board does not include TIF or EIFD proceeds and that any such tool would require local-government participation and separate approvals.

Public commenters urged the board to delay adoption or provide more time for local review, particularly for Central Valley stakeholders. Community organizations and county officials cited concerns about transparency, station siting (notably in Merced and Bakersfield), battery storage and data-center proposals, and the timing of public disclosures. Director Perea and others emphasized continued local engagement.

The board recorded affirmative roll-call votes for the contract authorization and for adoption of the business plan among the members recorded in the transcript. For the track-and-systems authorization, the transcript records "Yes" votes from Directors Schenk, Chair Kawa, Camacho, Perea, Escutia, Vice Chair Williams and Worthe; Director Cohen had recused herself from that item because of her outside role, and the record shows the protest had been dismissed. For the business plan adoption the roll call in the transcript recorded affirmative votes from Directors Schenk, Chair Kawa, Camacho, Perea, Escutia, Vice Chair Williams, Worthe and Director Cohen. Secretary announced both motions carried.

What happens next: staff said KSWH JV will be issued NTPs to begin work on Packages 1B and 2 with the intent to begin track laying in 2026 and to advance systems design and OEM procurements. On the business plan, staff said they will continue outreach with local governments as they begin implementation activities and pursue private-sector co-development opportunities described in the plan.

At the meeting's close CEO Ian Choudri emphasized that the package of decisions marked a shift from planning and civil work toward operating railroad activities and the Authority———s new leadership and staff———will press to deliver construction and commercialization milestones.