Feds Cancel $60M in Grants for Texas High-Speed Rail Project
The 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.
Walking away from the Texas Central Railway project at this time will allow Amtrak to focus on necessary improvements to deliver more reliability to its current riders.
Photo: METRO
U.S. Department of Transportation Secretary Sean P. Duffy announced an agreement between the Federal Railroad Administration (FRA) and Amtrak to terminate the $63.9 million grant awarded to Amtrak under the Corridor Identification and Development (CID) Program for the Amtrak Texas High-Speed Rail Corridor, previously known as the Texas Central Railway project.
The 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,” according to Secretary Duffy.
Facing Financial Issues
While Amtrak ridership has recovered since the pandemic, it has struggled with significant operating deficits.
In addition, Amtrak has had high-profile operational challenges, including delays on its own Northeast Corridor and the loss of its Horizon coach fleet to corrosion. Fixing these issues is a top priority for FRA.
Walking away from the Texas Central Railway project at this time will allow Amtrak to focus on necessary improvements to deliver more reliability to its current riders.
“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.”
Looking at Additional Projects
The announcement does not represent the end of FRA’s interest in new rail projects.
FRA has an array of programs that can help with the development of new rail corridors, including high-speed rail routes, and will continue to work with stakeholders to develop cost-effective opportunities.
The administration will be able to reallocate the approximately $60 million balance from the termination of this CID Program grant to other projects that support safe, efficient, and reliable rail transportation.
More Rail
New York MTA Leverages Zoning Program to Advance Station Accessibility
Accessibility enhancements at Nevins St Station will be financed through a development agreement tied to the MTA's Zoning for Accessibility initiative.
Read More →
Virginia's $28.5B Transportation Plan Targets Transit and Rail
Approved by the Commonwealth Transportation Board, the program supports ongoing infrastructure projects while providing new investments in transit, state of good repair and transportation alternatives.
Read More →
DOT: Brightline Corridor Incidents Fall 30% Following Federal Safety Upgrades
Safety improvements funded through a $25 million federal investment are credited with reducing trespassing and train-vehicle collisions along the Brightline Florida corridor.
Read More →
D Line Expansion Fuels Growth Across LA Metro's Rail System
Weekend rail ridership was especially strong, soaring 18% as riders embraced expanded access to jobs, entertainment, dining, and cultural destinations, said the agency. Total system ridership for May, including bus and rail, was 26,966,657.
Read More →
Southern California's Metrolink Debuts Contactless Fare Payment Pilot
Customers traveling between Redlands and Los Angeles can now tap their preferred payment method, including a credit or debit card, mobile wallet, or wearable device, at station validators before boarding and again while exiting.
Read More →
California's BART Approves FY27 Budget While Maintaining Service Levels
The budget covers July 1, 2026, through June 30, 2027, a period when pandemic emergency funds run out, the District faces a structural deficit of $375 million, and a regional transit funding measure may appear on the November ballot.
Read More →
Penn Station Transformation Advances with Design Unveiling
The historic redesign will transform the busiest transit hub in the Western Hemisphere from the tracks to the street level, creating a more efficient, cleaner, and functional experience for more than 600,000 daily commuters and millions of visitors.
Read More →
Second Avenue Subway Phase 2 Advances into Major Construction Stage
New York Governor Kathy Hochul joined leadership from the MTA, elected officials, and Harlem community leaders to break ground on the major construction stage of the transformative Second Avenue Subway Phase 2 project.
Read More →
The Invisible Infrastructure of Passenger Flow
What a seat reservation system on Austria’s Railjet trains reveals about the future of rider experience, and why U.S. agencies should pay attention.
Read More →
Caltrain Board Approves FY27 Budget, Endorses Efficiency Measures
The move ensures Caltrain service will continue operating as usual in the near term, but long-term financial challenges remain for the rail agency absent a new revenue source.
Read More →