Federal Grant Canceled for Texas High-Speed Rail Line

The U.S. Department of Transportation has canceled a $63.9 million grant intended for the Texas high-speed rail project due to ballooning costs and dependence on public funding. This is reported by the railway transport news portal Railway Supply.

Private Sector to Take the Lead on Texas Rail Project

Transportation Secretary Sean Duffy stated the proposed Dallas-to-Houston line, initially a private venture, no longer justified taxpayer support. Originally called the Texas Central Railway, it planned to link the two cities over 390 kilometers at 350 km/h.

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Texas Central has worked with Amtrak since 2016. However, the Department announced on April 14 that the project’s cost surged past $40 billion, making it too risky for federal investment.

The canceled funds will now go to alternative rail developments nationwide. Despite this decision, investor John Kleinheinz of Kleinheinz Capital Partners remains committed. He acquired the Japanese stake and plans to implement Shinkansen technology.

In a statement to Texas Rail Advocates, Kleinheinz called the grant’s cancellation “good news,” citing reduced federal interference. He reaffirmed confidence in private sector leadership and projected job creation and economic growth for Texas.

Amtrak Refocuses While Texas Project Shifts Direction

Secretary Duffy emphasized that Amtrak should address its own infrastructure issues before supporting external initiatives. While ridership has bounced back, the operator still faces delays and equipment deterioration.

Duffy added that investing in a project originally pitched as private was a misuse of taxpayer money. “Let the private sector carry the load if it believes in the project’s viability,” he said.

FRA Chief Counsel Kyle Fields acknowledged that connecting Dallas and Houston remains a promising opportunity. However, he agreed that the Texas high-speed rail proposal no longer warrants federal backing.

DOT confirmed its continued interest in new passenger rail efforts. It plans to collaborate with stakeholders on more financially sound alternatives.

Source, photo: www.railwaygazette.com

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