Feds Pull $64M Grant for Texas High-Speed Rail, Calling Project a ‘Waste’

The highly anticipated high-speed rail project linking Houston and Dallas faced a significant setback on Monday when the U.S. Department of Transportation revealed the cancellation of a $63.9 million planning grant given to Amtrak.

The grant, given in September 2024 during the Biden administration, aimed to support the revival of the Texas Central Railway project. Transportation Secretary Sean P. Duffy, appointed by President Donald Trump, described the project as “a waste of taxpayer funds and a distraction” from Amtrak’s mission to enhance current services.

“The Texas Central Railway project was introduced as a private initiative,” Duffy declared. “Should the private sector find this project viable, they ought to advance the pre-construction efforts independently, without relying on taxpayer support.”

The project, estimated to exceed $40 billion, aimed to utilize Japanese Shinkansen technology to link Houston and Dallas in approximately 90 minutes. Although it previously received backing from President Joe Biden and former Japanese Prime Minister Fumio Kishida, it has faced ongoing challenges with funding and resistance from rural landowners along the proposed 240-mile route.

At the beginning of this year, Amtrak initiated the search for a delivery partner to advance the project. However, with the grant now canceled, the project's future remains uncertain.

The Department of Transportation announced that approximately $60 million from the unspent funds will be redirected to other initiatives to enhance safe and dependable rail transportation.

“Departing from the Texas Central Railway project enables Amtrak to concentrate on essential enhancements to provide greater reliability for its existing passengers,” the department’s release stated.

In light of the recent setback, the Federal Railroad Administration recognized ongoing interest in high-speed rail while highlighting the importance of sustainable and fiscally responsible investments.

“The prospect of linking Dallas and Houston through new passenger rail is truly thrilling,” stated FRA Chief Counsel Kyle Fields. “However, making this proposal federal is not the most effective allocation of taxpayer funds at this moment.”

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