The US Department of Transportation (US DOT) has withdrawn a 63.9 million USD federal grant originally allocated to Amtrak for the Texas High-Speed Rail Corridor project, formerly known as Texas Central Railway.
Transportation Secretary Sean P. Duffy has stated that this agreement between the Federal Railroad Administration (FRA) and Amtrak will allow the remaining grant funds to be redirected to other rail projects.
The Texas high-speed rail initiative, which aims to connect Dallas and Houston, was originally pitched as a privately funded venture. However, rising cost estimates—now exceeding 40 billion USD—have led the Department of Transportation to reconsider federal support, citing the project’s increasing reliance on taxpayer funding.
Secretary Duffy said: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.
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 prioritise efficiencies.
Despite the cancellation of this grant, FRA has emphasised its ongoing commitment to rail development, including high-speed and intercity corridors, through a range of funding and planning programmes.
The approximately 60 million USD balance from the now-terminated grant will be reallocated to other projects through FRA’s Corridor Identification and Development (CID) Program, which supports the development of efficient, cost-effective, and safe rail networks.
The decision arguably marks a notable shift in federal transportation priorities, focusing on optimising current infrastructure.
FRA Chief Counsel Kyle Fields said:Connecting Dallas and Houston remains one of the more exciting opportunities for new passenger rail in the United States. Today’s announcement reflects a recognition by Amtrak and FRA that federalising the Texas Central Railway proposal is not the best use of taxpayer funding.
