The U.S. Department of Transportation announced in an April 14 news release that a $63.9 million federal grant awarded to Amtrak for a proposed high-speed rail line connecting Dallas and Houston has been put to an end.
The details
The decision, which comes from an agreement with the Federal Railroad Administration and Amtrak, effectively halts federal support for the project, originally led by Texas Central as a privately-funded venture, according to the news release.
The U.S. Department of Transportation officials cited the ballooning projected cost—now estimated at more than $40 billion—as a key reason for ending the grant under the Corridor Identification and Development Program, per the release.
Diving in deeper
The high-speed rail project, envisioned to connect Dallas and Houston in under 90 minutes, had shifted in recent years to rely on federal dollars and Amtrak’s participation. However, officials said the financial and operational strain already facing Amtrak, including service delays and aging infrastructure, is FRA’s top priority, according to the release.
The roughly $60 million from the now-canceled grant will be redirected to other rail projects deemed more cost-effective, according to the news release.
In a statement, the Fort Worth-based investment group Kleinheinz Capital Partners said the company has stepped in as the "private sector sponsor" of the project.
“Today’s announcement is good news for the overall project," a representative from Kleinheinz Capital Partners said in an email to Community Impact. "We agree with Secretary Duffy that this project should be led by the private sector, and we will be proud to take it forward.”
In its statement, Kleinheinz Capital Partners said the project is "shovel-ready."
Quote of note
“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 via news release. “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."
Community Impact has reached out to Texas Central and will update this story with any comments.
