A move by the U.S. Department of Transportation to pull funding from a Texas high-speed rail project will shift the project to the private sector.
U.S. Transportation Secretary Sean Duffy said the move would save taxpayers money and allow Amtrak to focus on its existing services. Duffy said an agreement between the US DOT’s Federal Railroad Administration and Amtrak would terminate the $63.9 million grant awarded to Amtrak under the Corridor Identification and Development (CID) Program for the Amtrak Texas High-Speed Rail Corridor previously 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,” Duffy said. “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.”
Duffy said the project’s costs have increased to more than $40 billion, making construction unrealistic and a risky venture for taxpayers. The cost made the project dependent on the federal government for the money, he said.
In Texas, state Rep. Tom Craddick, chair of the House Transportation Committee, said his committee would hold a hearing on Thursday, April 17 to hear from Texas Central, the originator for the high-speed rail project. During a previous committee meeting, members were not pleased with responses from a Texas Central spokesperson and a subpoena was issued for the firm to appear before the committee with company documents.
The FRA said a rail connection between Dallas and Houston is still a priority.
“Connecting Dallas and Houston remains one of the more exciting opportunities for new passenger rail in the United States,” FRA Chief Counsel Kyle Fields said in a statement. “Today’s announcement reflects a recognition by Amtrak and FRA that federalizing the Texas Central Railway proposal is not the best use of taxpayer funding.”
FRA also said it will be able to reallocate the money previously awarded to the Texas Central project to other rail projects.