The U.S. Department of Transportation (USDOT) has confirmed the termination of a USD 63.9 million grant awarded to Amtrak under the Corridor Identification and Development (CID) Programme for the Texas High-Speed Rail Corridor, formerly known as the Texas Central Railway project.
U.S. Transportation Secretary Sean P. Duffy announced that the agreement to end the funding was reached between the Federal Railroad Administration (FRA) and Amtrak, citing the project’s escalating costs and its growing dependence on federal support. Originally proposed as a private initiative, the project’s estimated capital cost has reportedly risen to over USD 40 billion.
“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 Secretary 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 announcement comes amid ongoing efforts to prioritise core infrastructure improvements for Amtrak, which continues to recover from post-pandemic challenges but faces persistent operational and financial difficulties. These include service delays on the Northeast Corridor and the deterioration of its Horizon coach fleet due to corrosion.
The project’s growing reliance on federal loans and grants under the previous administration had raised concerns regarding the level of financial risk placed on taxpayers. According to the Department of Transportation, redirecting resources from the Texas Central venture will allow Amtrak to refocus on improving its existing services.
“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 federalising the Texas Central Railway proposal is not the best use of taxpayer funding.”
While the decision marks the end of federal involvement in the Texas project, the FRA stressed it remains committed to supporting new rail initiatives. The administration will reallocate the approximately $60 million remaining from the cancelled grant to other projects aimed at enhancing safe, efficient, and reliable rail transport across the country.
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