Department of Transportation Terminates $63.9M Grant for Dallas-Houston Rail Line

The U.S. Department of Transportation has officially terminated a $63.9 million federal planning grant for the proposed high-speed rail line between Dallas and Houston, dealing a significant blow to the long-delayed Texas Central Railway project.

The grant, which was part of an agreement between the Federal Railroad Administration and Amtrak, was intended to support pre-construction work for the privately backed rail line. But on Monday, Transportation Secretary Sean Duffy announced the funding would be withdrawn.

“The Texas Central Railway project was proposed as a private venture,” Duffy said. “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 also criticized the project’s direction, stating that the two agencies “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.”

The Texas Central project has faced ongoing challenges since it was introduced in 2009, including legal battles with landowners, opposition from rural communities, and rising construction costs. Originally estimated at $12 billion, the project's projected cost has since ballooned to over $40 billion, according to the Department of Transportation.

In March, Andy Jent, a representative for Texas Central, told state lawmakers that the company had acquired only about 25% of the land needed for the route. He also confirmed that Japanese investors had exited the project earlier this year and that Fort Worth investor John Kleinheinz is now the lead financier.

Despite the loss of federal support, Texas Central’s main investor remains optimistic.

“We agree with Secretary Duffy that this project should be led by the private sector, and we will be proud to take it forward,” Kleinheinz Capital Partners said in a statement. “This project is shovel-ready and will create significant new jobs and economic growth for Texas.”

Critics of the project said the grant cancellation reinforces their long-standing concerns.

“Every session since 2015, high-speed rail company reps have come to Austin touting their private project, repeatedly stating they didn’t need one cent from the state. Everything they said they wouldn’t do; they did. But we have continued to stand in the gap and everything we said would happen, unfortunately has happened,” said Waller County Judge Trey Duhon, president of Texans Against High-Speed Rail.

The Texas House Transportation Committee has subpoenaed Texas Central representatives and is scheduled to hear from the company on Thursday.