Trump administration pulls $64M Amtrak grant for Texas high-speed rail project

U.S. Transportation Secretary Sean Duffy yesterday announced a $63.9 million grant awarded to Amtrak to develop a high-speed rail corridor between Dallas and Houston has been cancelled.

The Biden administration awarded the grant to Amtrak through the Federal Railroad Administration's Corridor Identification and Development (CID) Program. Amtrak's goal of the project was to work with Texas Central to advance a proposed high-speed line between Dallas and Houston. But yesterday, in a U.S. Department of Transportation press release, Duffy said that Amtrak and the FRA have agreed to terminate the grant. 

The project was announced originally as a private venture. But as the cost estimates dramatically ballooned, the Texas Central proposal became dependent on Amtrak and federal dollars for development work, USDOT officials said in the press release. The project capital cost is now believed to be over $40 billion, making construction unrealistic and a risky venture for the taxpayer, they added.

"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 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."

The USDOT press release noted that Amtrak has struggled with "significant operating deficits," even though its ridership has recovered since the pandemic.

"In addition, Amtrak has had high-profile operational challenges, including delays on its own Northeast Corridor and the loss of its Horizon coach fleet to corrosion. Fixing these issues is a top priority for FRA," the press release stated. Walking away from the Texas Central project "will allow Amtrak to focus on necessary improvements to deliver more reliability to its current riders," USDOT officials said.

Revoking the grant does not mean the FRA under the Trump administration is not interested in new rail projects, they added.

"FRA has an array of programs that can help with the development of new rail corridors, including high-speed rail routes, and will continue to work with stakeholders to develop cost-effective opportunities," the release stated. "FRA will be able to reallocate the approximately $60 million balance from the termination of this CID Program grant to other projects that support safe, efficient, and reliable rail transportation."