Wedoany.com Report-Apr. 17, The U.S. Department of Transportation has withdrawn funding for a high-speed rail project in Texas, redirecting the initiative to private sector management. The decision terminates a $63.9 million grant previously awarded to Amtrak under the Corridor Identification and Development Program for the Amtrak Texas High-Speed Rail Corridor, formerly known as the Texas Central Railway project.

U.S. Transportation Secretary Sean Duffy explained that the move aims to reduce taxpayer costs and allow Amtrak to prioritize its existing services. “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. “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.”

Duffy noted that the project’s estimated costs have risen to over $40 billion, rendering it financially unsustainable for public funding. This escalation has made the project heavily reliant on federal support, prompting the shift to private investment. The Federal Railroad Administration (FRA) emphasized that the funds originally allocated to the Texas project will be redirected to other rail initiatives.

In Texas, state Representative Tom Craddick, chair of the House Transportation Committee, announced a hearing scheduled for April 17 to discuss the project with Texas Central, the project’s originator. Following dissatisfaction with Texas Central’s responses at a prior meeting, the committee issued a subpoena for the company to appear with relevant documents. “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.”

The FRA continues to view a rail link between Dallas and Houston as a valuable opportunity for enhancing passenger rail services. The shift to private sector leadership aims to ensure the project’s feasibility without burdening public resources. This decision reflects a broader effort to balance infrastructure development with financial responsibility, while maintaining focus on viable transportation solutions for Texas and beyond.