California is attempting to build the nation's first bullet train, a project that's ballooned in cost and has blown through deadline after deadline for more than a decade.

Now Gov. Gavin Newsom vetoed a bill containing what the project's independent watchdog calls "absolutely essential" tools for holding the High-Speed Rail Authority accountable.

CBS California Investigates recently exposed costly missed train-procurement deadlines and reported that the project could run out of money as soon as 2027 without new financing.

To provide oversight, the state created an independent watchdog in 2023: an inspector general with the power to audit contracts, investigate fraud and flag problems before they turn into bigger, more expensive ones.

That watchdog is Ben Belnap. He was appointed by Newsom and says the state has not given him all the tools he needs to fully do the job.

A bill meant to empower the office, Assembly Bill 1608, authored by Assemblymember Lori Wilson, passed the state Senate without a single "no" vote. The governor vetoed it.

Here's the twist: Newsom previously enacted the most controversial part of the bill. Those provisions give the inspector general new authority to temporarily withhold portions of his reports that reveal security risks, fraud-detection gaps or pending litigation. Critics called them "anti-transparency."

The Newsom administration quietly enacted the controversial portions by folding them into a state budget trailer bill. Trailer bills are companion measures that ride along with the state budget on a fast track, with less public vetting than standalone legislation.

The governor then vetoed the remaining provisions in the bill. That's the part that would give the inspector general the purchase authority and job classifications he says he needs to hold the High-Speed Rail Authority accountable.

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Newsom appointed the inspector general himself. It is not clear why the administration would oppose the tools its own appointed watchdog says he needs to oversee the governor's signature project and hold High-Speed Rail accountable.

CBS California Key findings:

  • Bureaucratic Waste | The inspector general has spent two years and $1.15 million trying to buy $300,000 in standard software — and still doesn't have it. In all, Californians could end up paying an extra $2 million for that software, driven by required agency fees, consultants and redirected staff time that could be avoided in the future if the governor signs this bill.
  • Staffing Shortages |  According to the IG, the watchdog's office is half-staffed because experienced auditors don't qualify under the current low-level job classifications — a problem the Legislature's own analyst predicted two years ago. Belnap says he's had to turn away "fabulous" candidates. The bill would allow him to immediately hire qualified staff instead of waiting years for the state's reclassification process.
  • Delayed Accountability |  The inspector general says, as a result of the staffing shortage, they have not yet been able to audit the rail authority's change order process, which records indicate is costing California taxpayers hundreds of millions of dollars.
  • Wide Support | The tools the Inspector General says he needs have drawn wide, bipartisan support in the legislature and from the Association of Inspectors General, which calls them consistent with national standards for OIG independence.
  • Unanswered Questions | The Newsom administration has not explained why it only agreed to include the controversial provisions of the original bill in its fast-tracked budget trailer bill, but not the provisions Newsom's own watchdog says he needs to hold High-Speed Rail accountable.

What AB 1608 actually does

As originally written, AB 1608 had four primary provisions that impacted the inspector general's office:  reporting rules, confidentiality framework, purchase authority and job classifications.

Two of those provisions recently became law as part of the state budget trailer bill. The inspector general now has to publish every completed report into High-Speed Rail. Previously, he only had to publish one annual summary.

The inspector general can temporarily withhold sensitive material — security risks, fraud-detection gaps, pending litigation — as long as he publicly reveals that he's withholding something, and explains why.

Republicans in the legislature called these "anti-transparency" provisions, focusing on the fact that the inspector general can withhold some information.

The Newsom administration folded these two provisions into this year's budget trailer bill, Senate Bill 169, which passed with the budget and required no separate floor vote on AB 1608 itself.

CBS California Investigates examined criticisms of the provisions in a separate fact-check and found the confidentiality rules come paired with disclosure requirements stronger than any that exist under current law.

The inspector general and the bill's author say they worked closely with the First Amendment Coalition (FAC), a nonpartisan government transparency organization, to amend the bill.

The FAC, an early opponent, flipped to support, calling the amended framework "a model" for how inspectors general can balance confidentiality with the public's right to know.

The Assembly budget subcommittee chair went further at a May hearing, calling it "beyond the gold standard" for inspector general transparency.

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The part that isn't law

After the administration enacted the controversial provisions through the trailer bill, AB 1608 was amended down to the two things the governor's office left out — the provisions the watchdog calls "absolutely essential": access to job classifications so he can hire qualified auditors, and purchase authority up to $1 million so the office can buy goods and services without waiting in the state's centralized line.

The provisions have support from the Association of Inspectors General, a nonpartisan group representing thousands of inspector general staff across nearly all 50 states, which called them standard for OIG independence and adequate resources. The group says it takes no position on the broader rail project; its support is limited to whether the bill strengthens the inspector general's own structure and authority.

Belnap says administration officials have told him they want strong oversight and asked how they can help. His answer never changes: purchase authority and higher-level job classifications, which AB 1608 would grant immediately. Without them, the delays "directly impact our ability to complete timely, robust reviews."

The stakes go beyond standard purchase authority. Investigating technical allegations about the rail project requires hiring outside experts — and without AB 1608, Belnap says his office can't do that on its own. The bill "would allow my office to efficiently — and independently — hire needed expertise," he wrote; without it, procuring experts "will be lengthy and subject to the review and approval of other entities."

In other words: Belnap says the watchdog's investigations of the state currently depend, in part, on the state's permission to staff them.

As the bill was heading to appropriations in early August, Sen. Dave Cortese, who chairs the Senate Transportation Committee, stressed: "Everyone should be held accountable if the inspector general doesn't have the resources he needs. We're all accountable for that."

Wilson, the Assembly transportation chair and the bill's author, called it "unacceptable" for the Legislature or the administration to hamper the inspector general.

Wilson added, "But guess what? If it dies, guess what I'll be doing in January. I'll be introducing this again."

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The warning signs were on the record in May

At a May budget hearing, the inspector general told the subcommittee that the administration's proposed trailer bill didn't go far enough. It only included the controversial reporting and confidentiality language. 

The inspector general added that the purchase authority and access to higher-level job classifications  were "absolutely essential."

The governor's Department of Finance representative would say only that they were "taking into consideration the feedback."  

A month later, the administration's trailer bill became law, without the "absolutely essential" parts of the bill.

The governor's office has not explained why.

What it's costing taxpayers to wait

Two pieces of off-the-shelf software, standard across the industry, were supposed to cost the High-Speed Rail watchdog about $300,000. Instead, the state approved a combined project budget of more than $2.5 million, and Belnap says about $2 million of that total is driven by the state's own oversight requirements, required consultants and redirected staff time.

The office needs the two systems: one to safely take whistleblower complaints, one to manage audit files. Two years in, Belnap says neither is fully in place.

By June 2026, the office had already spent roughly $1.15 million, about $945,000 of it tied to the state's oversight requirements, consultants and redirected staff time. Not the software itself.

"We've spent millions," Belnap said, just to get authorization to buy $300,000 worth of software he still doesn't have.

In a written response in August, he put the toll in hours as well as dollars: for his small staff, time spent on the state's approval process "delayed, on a 1 hour-to-1 hour basis, my office's ability to complete timely investigations."

Meanwhile, a whistleblower inside High-Speed Rail can only report a problem through a server the rail authority itself can access. "We have complained about this for two years," Belnap added, noting his inability to ensure confidentiality for whistleblowers.

Then there's staffing. "Currently my office is half-staffed because of classifications," Belnap said.

The state's own analysts said the watchdog's staffing request was "well justified" two years ago. Today, despite year-round recruiting, Belnap says only half his budgeted staff-level positions are filled because the state's job classifications don't pay enough to compete for qualified auditors.

The Legislative Analyst's Office reviewed his request in February 2024 — 15 positions, eight staff-level — and found the staffing would support six major reviews a year, plus roughly 900 hours responding to whistleblower complaints and 2,000 hours answering the Legislature, the governor and the rail authority itself. The LAO even warned that without a higher-level job classification, the office could struggle to attract and retain staff.

The cost is a half-billion-dollar blind spot. The office's own work plan called for reviewing the rail authority's change-order process by July 2026 — including a $500 million-plus construction change order settlement.

Belnap confirmed in a written response to CBS California Investigates that the review hasn't even begun due to the staffing shortage. It's now pushed into next fiscal year.

Creating a new job classification series through CalHR and the State Personnel Board is an option, but it takes years and significant administrative resources Belnap says the office doesn't have, with no guarantee the classification gets approved at the end of it.

Correcting the record on the $1 million

At a June 23 Senate Transportation Committee hearing, Sen. Dave Cortese, the committee's chair, raised a concern about the bill's price tag. "I don't know if a million on the appropriation piece of it is the right amount or not," Cortese said. "I think we've received some inquiries about that."

However, AB 1608 doesn't appropriate $1 million to the inspector general's office.

It gives the office authority to enter qualifying contracts worth up to $1 million without first obtaining another state agency's approval. The office would still need money in its budget to pay for those contracts and would still have to follow state purchasing rules.

In other words: $1 million is the contracting threshold, not a $1 million check. That distinction matters if the governor's office cites cost as a reason.

It's worth noting the office is already paying more to wait: roughly $1.15 million so far on software the state budgeted at more than $2.5 million, driven largely by its own approval requirements.

The veto message, point by point

In his September 30 veto message, Newsom offered three arguments for rejecting the bill. Here's how they compare with the record.

1. Exemptions from state oversight

Newsom's office says: "This bill would exempt the Office of Inspector General for the California High-Speed Rail Authority from specified state personnel and contracting requirements."

The record shows: The bill would have allowed Inspector General Ben Belnap to use existing job classifications and salaries already approved for other state watchdog agencies, and purchase goods and services up to $1 million without additional state agency approval. His office would still have to comply with other applicable state personnel and contracting laws.

The distinction: California already allows the High-Speed Rail Authority to award major construction and engineering contracts without Department of General Services approval, regardless of the contract amount. The administration raised concerns about granting its independent watchdog similar purchasing authority, even with a $1 million limit.

2. Previous efforts to strengthen oversight

Newsom's office says: "The Office was established in 2022 to strengthen independent oversight and accountability. Earlier this year, we enhanced the Office's authority by enacting budget trailer bill language expanding the Office's ability to protect whistleblowers and safeguard sensitive investigative records while preserving transparency and accountability."

The record shows: The Legislature created the inspector general's office in 2022, but Newsom didn't appoint Belnap until September 2023, and the office couldn't begin hiring staff until 2024.

The administration did approve new whistleblower protections and confidentiality rules in 2026, provisions CBS California Investigates examined in a separate fact-check.

But those changes did nothing to fix the staffing and purchasing problems delaying investigations and operational reviews. The office still lacks the authority to use existing job classifications needed to recruit experienced auditors.

3. Existing processes and administrative safeguards

Newsom's office says: "My administration also has continued to support the Office through targeted actions, including a planned increase in its information technology project delegation authority. The Office should continue working with the appropriate state agencies to address its operational needs through existing processes rather than receive broad, permanent exemptions from generally applicable statewide administrative safeguards."

The record shows: Those existing processes have already cost Belnap's office more than $1 million and over a year in additional administrative expenses and delays as it sought approval to buy $300,000 in software for confidential whistleblower complaints.

The administration's proposed increase in IT project authority doesn't eliminate the separate purchasing approvals or fix the staffing classifications that have delayed investigations.

Belnap's office has repeatedly explained these problems to the administration and lawmakers. Without the exemptions, it must devote additional staff, time and resources to navigating the approval process instead of conducting oversight.

Meanwhile, the High-Speed Rail Authority already operates under broader contracting exemptions for major construction and engineering projects than the limited $1 million purchasing authority Newsom denied its independent watchdog.

(This article was updated after the governor vetoed the bill. )

This story published first on CBS News at 11:37 p.m. on Aug. 17, 2026.

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Source: CBS News · Julie Watts

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