WASHINGTON, D.C. (KBTX) - U.S. Transportation Secretary Sean P. Duffy announced the termination of a $63.9 million federal grant on Monday. The grant was intended for pre-construction work on the Texas high-speed rail corridor between Dallas and Houston.
The agreement between the Federal Railroad Administration (FRA) and Amtrak ends the Corridor Identification and Development Program grant awarded to what was formerly known as the Texas Central Railway project.
Duffy said the project has become too costly and risky, with estimates exceeding $40 billion.
“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 announced. “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.”
The Department of Transportation said the decision, made in agreement with Amtrak and the Federal Railroad Administration, will save taxpayers more than $60 million and reflects a shift away from backing what he called “unrealistic” private ventures reliant on federal funding.
“This project was originally announced as a purely private venture, but as the cost estimates dramatically ballooned, the Texas Central Railway proposal became dependent on Amtrak and federal dollars for development work. The project capital cost is now believed to be over $40 billion– making construction unrealistic and a risky venture for the taxpayer,” the statement said.
The Texas Central High-Speed Rail project has faced mounting scrutiny over cost projections, which now exceed $40 billion, and years of delays. It originally launched as a privately financed initiative but has recently leaned on Amtrak and federal assistance for development work.
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FRA officials said Monday’s move frees up grant funds for more viable and cost-effective rail projects nationwide. Despite the setback, the agency said it remains committed to expanding passenger rail through its existing programs.
“Connecting Dallas and Houston remains one of the more exciting opportunities for new passenger rail in the United States,” said FRA Chief Counsel Kyle Fields. “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.”
Kleinheinz Capital Partners, the lead investment sponsor in Texas Central, responded to the announcement Monday, calling it a positive step for the future of the project.
“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. 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,” the statement said. “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.”
Texans Against High-Speed Rail praised the Department of Transportation’s decision to end the grant, calling it a long-overdue step.
“This decision puts a nail in the coffin in what had become the biggest bait and switch to be perpetrated on taxpayers in generations,” said Judge Trey Duhon, President of Texans Against High-Speed Rail. “What was originally conceived as a ‘completely privately funded’ project was being foisted on taxpayers, and we are thankful that the DOT and FRA recognized this for what it was – a bad idea.”
ReRoute the Route, a coalition of Texas civic and business leaders, also supported the decision.
“We have long known that this failed project is a complete waste of federal taxpayer money,” said spokeswoman Jennifer Stevens. “We appreciate Congressman Jake Ellzey’s leadership in Washington to persuade President Trump and Transportation Secretary Duffy to terminate the $63.9 million grant to Amtrak. They have all worked hard and successfully to put Texans and private property rights above special interests and wasted taxpayer monies.”
It's over! Today, Secretary Duffy and the U.S. Department of Transportation rescinded the grant funding for Texas...
Posted by Rep. Jake Ellzey onMonday, April 14, 2025
Full Department of Transportation Statement Below:
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