U.S. Dept. of Transportation pulls $63.9M grant meant for Dallas-Houston rail line

DALLAS - Federal officials have pulled a multi-million-dollar grant meant to help fund a high-speed rail line between Dallas and Houston.

What we know:

U.S. Department of Transportation Secretary Sean P. Duffy announced an agreement between the Federal Railroad Administration and Amtrak to end the $63.9 million grant for the Amtrak Texas High-Speed Rail Corridor.

Amtrak and the Texas High-Speed Rail Project planned to work together connect the state's two largest cities with a 205 mph train. The proposed 240-mile rail line, based on Japanese bullet train technology, would get passengers from Dallas to Houston in less than 90 minutes.

Proposed high-speed rail map (Courtesy: Texas Central)

The project was originally expected to be funded by private companies, but brought in Amtrak and federal dollars for development work as the costs rose.

In a news release, the Department of Transportation said the project's capital costs are now believed to be over $40 billion.

Duffy called the project a "risky venture" and a "waste of taxpayer funds."

The Department of Transportation said that walking away from the project will let Amtrak focus on improvements to improve reliability for current riders.

The grant money is expected to be used on other projects.

What we don't know:

It is not clear how the change will impact the project.

What they're saying:

"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," said U.S. Transportation Secretary Sean P. Duffy. "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."

Congressman Jake Ellzey (R-Waxahachie) celebrated news in a release.

"We cannot allow taxpayer money to be used for a project that threatens to seize land in Texas for a rail line that does not align with the needs and interests of our communities," he said in part. "Land cannot be taken, homes cannot be destroyed, and lives should not be disrupted for a project that does not serve the needs of our state. As I have stated before, I strongly oppose the use of eminent domain for private ventures like the high-speed rail project."

Kleinheinz Capital Partners, the lead investment sponsor in Texas Central, says they are encouraged by the news.

"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. 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," said a spokesperson in a statement.

Travis County judge Andy Brown's office says he's still hopeful that an improved rail line could come through central Texas.

"Judge Brown has been made aware of the cuts, but has not been given specific details. He remains focused on bringing improved passenger rail to help the Travis County - Bexar County super regional continue to thrive," read a statement from his office.