The federal government is cutting a roughly $64 million grant for a high-speed train that would’ve connected Houston and Dallas, U.S. Transportation Secretary Sean Duffy announced Monday, citing it would be a waste of taxpayer money.
This project, Duffy said, was originally announced as a private venture, but he claims capital costs have ballooned and are believed to be over $40 billion, “making construction unrealistic and a risky venture for the taxpayer.”
“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,” Duffy wrote.
The $63.9 million grant was awarded to Amtrak last fall under the Corridor Identification and Development (CID) Program for the Amtrak Texas High-Speed Rail Corridor previously known as the Texas Central Railway project.
But to Texans who have been promised action for more than a decade, it’s simply known as a high-speed bullet train that can’t seem to get moving.
The 240-mile route was first talked about in 2012 and proposed getting people between Houston and Dallas in 90 minutes on a train going 205 miles per hour. Driving a vehicle takes about four hours.
If completed, developers have said the project is estimated to remove 12,500 cars per day from I-45. In addition, developers have claimed the rail would bring thousands of well-paying construction jobs and nearly 1,000 long-term positions to the region.
In 2017, a firm was hired to work on the project’s design and engineering. By 2020, the same year a train was promised to be up and running, the project was still missing necessary permitting applications.
The project faced a legal challenge in 2021 over land rights, with many rural landowners opposing it. The ruling ultimately went in Texas Central’s favor to use eminent domain.
Starts and stops: High-speed bullet train project through the years
- History of Texas bullet train project
- All aboard! Proposed Texas high-speed Houston-Dallas rail lands $500K in federal funds
- Dallas-Houston bullet train developer faces a leadership exodus as land acquisition slows
- 90-minute trip to Dallas moves closer to reality
- 6 rural Texas counties file lawsuit against Houston-Dallas high speed train
The following year, in 2022, Texas Central Railway’s CEO left the company, saying he couldn’t secure the agreements to move it forward. The following year, in 2023, Texas Central and Amtrak announced they’d applied for federal grants to study the project and build the rail line.
The $63.9 million grant was awarded in September, but months later, has been cut.
The Federal Railroad Administration and Amtrak agreed that was the right move. “Today’s announcement reflects a recognition by Amtrak and FRA that federalizing the Texas Central Railway proposal is not the best use of taxpayer funding,” FRA Chief Kyle Fields said.
Amtrak also has issues to fix, Duffy said, including “significant” operating deficits and high-profile operational challenges such as delays on its own Northeast Corridor and the loss of its Horizon coach fleet to corrosion.
While it’s not immediately clear what the cut means for the future of the Texas bullet train, Duffy said the government is still interested in new rail projects. The $60 million cut will go toward supporting other rail plans that are “safe,” “reliable” and “efficient,” Duffy added.
You can read the full announcement on the U.S. Department of Transportation website.
This story comes from our news partner ABC13 Houston.
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