DOT terminates $64 million in federal funding for Texas high-speed rail project

• The U.S. Department of Transportation has canceled nearly $64 million in federal funding for a proposed high-speed rail between Dallas and Houston. Transportation Secretary Sean Duffy called the project a misuse of taxpayer money and stressed that it should be funded privately.
• The estimated $40 billion rail line, backed by Kleinheinz Capital Partners, has faced delays and landowner opposition.
• About 25% of the land needed has been acquired, The Texas Tribune reports.

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The U.S. Department of Transportation terminated nearly $64 million in federal funding for a high-speed rail between Dallas and Houston.

The rail would travel at just over 200 miles per hour and take only 90 minutes to get to Dallas from Houston and vice versa. The drive from downtown Dallas to downtown Houston via Interstate 45 is roughly 240 miles.

Trump administration pulls plug on grant funding

Transportation Secretary Sean Duffy announced Monday, April 14, that the agreement between the Federal Railroad Administration (FRA) and Amtrak would end $63.9 million in grant funds for the Amtrak Texas High-Speed Rail Corridor, formerly known as the Texas Central Railway project.

“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.

He added the project was proposed as a private venture and that the private sector should cover the costs associated with construction.

According to the announcement, the costs of the Texas bullet rail are believed to be over $40 billion.

Private sector responds

Kleinheinz Capital Partners, the lead investor in the high-speed rail project, reacted to the news Monday and provided a statement to the Texas Tribune.

“We agree with Secretary Duffy that this project should be led by the private sector, and we will be proud to take it forward,” the company said in a statement. “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.”

Longtime project met with resistance

The high-speed rail line was first introduced in 2009 and has faced several development setbacks, as well as opposition from rural landowners and homeowners. About 25% of the parcels along the rail route have been bought by the project’s investors, the Texas Tribune reports.

Advocates for the project cite construction jobs for Texans and the reduced commuting time between Houston and Dallas.

Duffy says the approximately $60 million remaining balance will support Amtrak’s other rail operations, keeping services safe, efficient and reliable for customers.