Based on a financial review, Houston METRO announced it will not proceed with the federal grant application for the University Corridor BRT Project at this time.

The Federal Transit Administration (FTA) has communicated with Houston METRO’s executive staff that the agency will not be precluded from applying for funding at a later date, should the project prove to have future financial viability.

Additionally, it will not impact other funding opportunities.

Behind METRO’s Decision

Financial estimates for the project in 2019 were aspirational, but the COVID-19 pandemic significantly reduced ridership and increased costs — variables that were not calculated at the time the project was proposed, according to Houston METRO officials.

The project, as planned, would put the agency in a position that would financially impact the agency’s day-to-day operations and severely limit the ability to implement essential services, such as increased public safety, bus frequency, bus and train cleanliness, improved bus shelters, and enhanced sidewalks and roadways, since the federal grant does not cover the estimated $1.5 billion liability, stated Houston METRO officials.

“Our priority is a public transit system that is safe, clean, reliable and accessible,” stated METRO Chair Elizabeth González Brock. “METRO’s decision to not proceed with the federal grant process at this time is based upon the need to prioritize improved customer and community essential services and will better position the authority to increase overall system ridership.”

Next Steps

To achieve its mission for the region, Houston METRO plans to move forward with proof of concept and more viable infrastructure projects that are part of overall growth and development plans for the entire community, such as the Gulfton Transit and Revitalization Project.

“We will continue to engage with METRO customers, community leaders and key stakeholders as we review the viability of future projects and initiatives,” said Brock.