Federal officials have announced the withdrawal of a multi-million-dollar grant intended to help fund a high-speed rail line connecting Dallas and Houston.
U.S. Department of Transportation Secretary Sean P. Duffy revealed the agreement between the Federal Railroad Administration and Amtrak to terminate the $63.9 million grant for the Amtrak Texas High-Speed Rail Corridor.
The ambitious project aimed to link Texas’s two largest cities with a 205 mph train, allowing passengers to travel the proposed 240-mile rail line in under 90 minutes.
This plan was based on Japanese bullet train technology and initially anticipated funding from private companies. However, as development costs escalated, Amtrak and federal dollars became involved in the project.
According to a news release from the Department of Transportation, the project’s capital costs have now exceeded $40 billion.
Duffy criticized the project as a “risky venture” and described the funding as a “waste of taxpayer funds.”
He stated that withdrawing from the project would enable Amtrak to focus on enhancing the reliability of its existing services for current riders.
The grant money is now expected to be allocated to other transport projects.
While this decision has been made, the exact impact on the overall project remains unclear.
In his statements, Secretary Duffy emphasized the importance of directing funds toward more efficient projects. He remarked, “I am pleased to announce that FRA and Amtrak are in agreement that underwriting this project is a waste of taxpayer funds and a distraction from Amtrak’s core mission of improving its existing subpar services.”
Duffy further added, “The Texas Central Railway project was proposed as a private venture. If the private sector believes this project is feasible, they should carry the pre-construction work forward, rather than relying on Amtrak and the American taxpayer to bail them out. My department will continue to look for every opportunity to save federal dollars and prioritize efficiencies.”
Congressman Jake Ellzey (R-Waxahachie) expressed support for the decision, celebrating the withdrawal of taxpayer funding from the project.
In a release, he stated, “We cannot allow taxpayer money to be used for a project that threatens to seize land in Texas for a rail line that does not align with the needs and interests of our communities.”
Ellzey insisted, “Land cannot be taken, homes cannot be destroyed, and lives should not be disrupted for a project that does not serve the needs of our state. As I have stated before, I strongly oppose the use of eminent domain for private ventures like the high-speed rail project.”
Kleinheinz Capital Partners, the lead investment sponsor in Texas Central, expressed optimism regarding the announcement, asserting their readiness to advance the project’s objectives.
A spokesperson commented, “We are proud to have stepped in as the private sector sponsor of the Texas high-speed rail, and today’s announcement is good news for the overall project.”
They noted, “The first Trump Administration gave this project the green light, but after President Trump left office the project got hung up in the politics of the Biden Administration’s efforts to jam Amtrak and politics into the equation. We agree with Secretary Duffy that this project should be led by the private sector, and we will be proud to take it forward. This project is shovel-ready and will create significant new jobs and economic growth for Texas as part of President Trump’s efforts to boost the U.S. economy.”
Additionally, Travis County Judge Andy Brown remains optimistic for the future of improved rail lines traversing central Texas.
His office stated, “Judge Brown has been made aware of the cuts, but has not been given specific details. He remains focused on bringing improved passenger rail to help the Travis County – Bexar County super regional continue to thrive.”
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