DOT Saves Taxpayers $60 Million by Canceling High-Speed Rail Grant in Texas

The US Department of Transportation (DOT) announced Monday that it will save American taxpayers over $60 million by terminating a grant intended to help fund a high-speed rail project in Texas, Fox News reports.

Transportation Secretary Sean Duffy announced the agreement between the Federal Railroad Administration (FRA) and Amtrak to end the $63.9 million grant, which was awarded to Amtrak under the Corridor Identification and Development Program for the Amtrak Texas High-Speed Rail Corridor, formerly known as the Texas Central Railway project.

“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,” Secretary Duffy stated. “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.”

The Texas Central Railway project was initially touted as a private venture, but DOT officials said escalating cost estimates led to the project becoming reliant on federal dollars and Amtrak for its development.

According to the DOT, the capital cost for the project is estimated to be over $40 billion, making construction unrealistic and posing a significant risk to taxpayers.

The announcement comes as Amtrak continues to face operational challenges, including operating deficits despite recovering ridership since the pandemic. The company has also struggled with issues such as the loss of its Horizon coach fleet due to corrosion and delays in the Northeast Corridor. The FRA has identified addressing Amtrak’s challenges as a top priority.

DOT officials further noted that under the Biden administration, Amtrak considered pursuing substantial loans underwritten by the US government, in addition to grants, to undertake construction activities for the project.

By withdrawing from the Texas high-speed rail project, Amtrak can now concentrate on essential improvements to enhance reliability for its riders, the DOT stated.

The $60 million in savings resulting from the project’s termination will be reallocated to other initiatives that “support safe, efficient, and reliable rail transportation,” according to the DOT.