DALLAS — Federal officials Monday pulled a $63.9 million in grant funding for the proposed Dallas-Houston bullet train, alleging the cost of the project had ballooned.
Amtrak received the $63.9 million grant for the proposed 240-mile high-speed rail line between Dallas and Houston last year as part of a $153 million funding rollout from the U.S. Department of Transportation for passenger rail projects around the country.
Earlier cost estimates for the project were $30 billion, but federal officials Monday alleged the cost had ballooned to more than $40 billion, leading to an agreement between the Federal Railroad Administration and Amtrak to cut the $63.9 million grant.
“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,” a press release from U.S. Transportation Secretary Sean Duffy read.
“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 said in a statement. “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 Houston-to-Dallas high-speed rail line has been in the works for years. The Houston Chronicle reports Texas Central Railway led the effort at first by buying land throughout the planned corridor.
Amtrak has since taken over the project and has worked with Texas Central on the project since 2016, when it entered into agreements to provide through-ticketing and other support services for the planned high-speed rail line.
Texas Central said in a statement to WFAA that the agreement to cut the grant funding “is good news for the overall 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,” Texas Central said in a statement. “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.”
The Federal Railroad Administration said the prospect of connecting Dallas and Houston “remains one of the more exciting opportunities for new passenger rail in the United States,” and it plans to reallocate the grant to other projects.
“Connecting Dallas and Houston remains one of the more exciting opportunities for new passenger rail in the United States,” FRA Chief Counsel Kyle Fields 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.”