Transportation Department Cuts Texas High-Speed Rail Funding, Saving Millions

WASHINGTON, D.C. — The U.S. Department of Transportation (DOT) announced Monday that it will save American taxpayers more than $60 million by terminating a grant initially aimed at funding the Texas High-Speed Rail project. Transportation Secretary Sean Duffy revealed that an agreement to cancel the $63.9 million grant was reached between the Federal Railroad Administration (FRA) and Amtrak.

The grant was awarded under the Corridor Identification and Development Program for the now-defunct Texas Central Railway project. Duffy stated, “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.”

Originally promoted as a private venture, the Texas Central Railway project faced rising cost estimates that made it increasingly reliant on federal funds. According to the DOT, projected costs for the project exceed $40 billion, making it financially impractical and a risky venture for taxpayers.

Amtrak has faced ongoing operational challenges, with ridership recovering from the steep declines seen during the COVID-19 pandemic but still experiencing deficits. “My department will continue to look for every opportunity to save federal dollars and prioritize efficiencies,” Duffy added.

FRA Chief Counsel Kyle Fields emphasized that canceling the Texas project allows Amtrak to concentrate on essential improvements to its current services. “Connecting Dallas and Houston remains one of the more exciting opportunities for new passenger rail in the United States,” he said. “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.”

The $60 million saved will be redirected to support other projects aimed at enhancing rail safety and efficiency, according to the DOT.

Amtrak did not respond to requests for comment concerning the grant termination.

Meanwhile, while Amtrak continues to battle operational inefficiencies, the FRA prioritizes addressing these issues to improve service quality and reliability for passengers.