FRA terminates CID grant awarded to Amtrak for Texas High-Speed Rail Corridor
The Federal Railroad Administration (FRA) and Amtrak have come to an agreement to 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. According to the FRA, the project was originally announced as a purely private venture, but as the cost estimates ballooned, the Texas Central Railway proposal became dependent on Amtrak and federal dollars for development work. FRA says the project’s capital cost is now believed to be over $40 billion, making construction unrealistic and a risky venture for the taxpayer.
“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 U.S. Department of Transportation Secretary Sean 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. My department will continue to look for every opportunity to save federal dollars and prioritize efficiencies.”
According to the FRA, walking away from the Texas Central Railway project at this time will allow Amtrak to focus on necessary improvements to deliver more reliability to its current riders, including fixing operation challenges and delays on the Northeast Corridor.
“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 federalizing the Texas Central Railway proposal is not the best use of taxpayer funding.”
FRA says it will be able to reallocate the approximately $60 million balance from the termination of the CID Program grant to other rail transportation projects.
