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Austin Transit Partnership Advances Federal Funding Process for Light Rail Project

See how the agency’s transit project completed a Final Environmental Impact Statement within the federal two-year guideline.

by Staff
January 20, 2026
Rendering of an Austin Light Rail station.

Austin Transit Partnership is set to reach another critical milestone with the scheduled contract award in February for the Austin Light Rail construction contract.

Credit: Austin Transit Partnership

2 min to read


Austin Light Rail continues to advance through the federal funding process, hitting another major milestone in the delivery of Austin’s first light rail system.

The Federal Transit Administration has issued a Record of Decision for Austin Light Rail’s Final Environmental Impact Statement (FEIS). This federal action officially affirms compliance with the National Environmental Policy Act (NEPA) and allows Austin Transit Partnership to continue in the federal funding process and to advance more detailed project work.

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“We’re grateful for the FTA’s partnership and guidance throughout this process and proud of the work our team has done to deliver a thorough environmental review on an accelerated timeline,” Austin Transit Partnership CEO Greg Canally said. “This has established a best practice that can be replicated for other mega projects.”

ATP reached this milestone in less than two years, aligning with the current FTA administration’s goal to streamline and improve how large public infrastructure projects are delivered. In comparison, other mega projects have often taken between five and seven years to advance through the NEPA process with FTA, with some requiring more than a decade.

“This is a big, important step for Austin and our city’s future affordability and mobility,” Austin Mayor Kirk Watson said. “It’s easy to get lost in the language and mumbo-jumbo of federal codes and regulations [...]. But there’s a pretty clear bottom line: Austin Transit Partnership has the Austin Light Rail program right on track toward construction, and it’s doing it with an impressive, streamlined efficiency.

Record of Decision Marks Major Federal Milestone for Austin Light Rail

Completion of the Record of Decision signifies that the federal government has formally accepted the project’s environmental analysis, community engagement, and technical planning to date, demonstrating project readiness, strong federal partnership, and continued progress toward federal funding. The decision itself allows ATP to advance elements of the project, such as more advanced design and early construction of utilities.

The FEIS confirms recommendations for the project previously shared during a formal review period of the Draft Environmental Impact Statement. These include a new downtown station near Wooldridge Square, a bridge across Lady Bird Lake incorporating a bike and pedestrian connection, and an elevated Waterfront Station to improve system reliability and rider experience. On East Riverside, refined station locations are located within an urban greenway.

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ATP is set to reach another critical milestone with the scheduled contract award in February for the Austin Light Rail construction contract. Upon award, the contractors will help shape and build nearly every aspect of the system, including the transitway, tracks, systems, stations, bridges, traffic signals, utilities, drainage structures, and streetscape.

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