Trump Administration Pulls Funding for Dallas-to-Houston Bullet Train Project
The Trump administration is pulling nearly $64 million in support for a proposed Dallas-to-Houston bullet train project, with Transportation Secretary Sean Duffy calling the project “a waste of taxpayer funds.”
U.S. Department of Transportation announced Monday that it would terminate a $63.9 million grant for the project led by Texas Central, the company behind the planned high-speed rail line.
Background of the Project
The funds were awarded to Amtrak, a public rail provider that Texas Central said in 2023 would help move the project forward. The Federal Railroad Administration and Amtrak agreed to terminate the $63.9 million previously awarded under the Corridor Identification and Development Program, according to Monday’s announcement.
“This project was originally announced as a purely private venture, but as the cost estimates dramatically ballooned, the Texas Central Railway proposal became dependent on Amtrak and federal dollars for development work,” the DOT said in a statement.
“The project capital cost is now believed to be over $40 billion — making construction unrealistic and a risky venture for the taxpayer,” the statement added.
Project History and Delays
The company announced plans more than a decade ago for a proposed train to shuttle passengers from Dallas to Houston in about 90 minutes, compared to the three-and-a-half-hour car trip on Interstate 45. Texas Central planned to model the bullet train after partner Japan Central Railways’ Shinkansen system.
The project has faced many delays and leadership changes since, and uncertainty about the final costs remain.
In a hearing before the Texas House Transportation Committee earlier this month, a Texas Central representative said details about how the rail line would be funded and the project timeline remains in flux. The company also expressed doubt that Amtrak would continue to lead the effort.
Reaction from Texas Central and the Federal Government
Texas Central confirmed during the hearing that the company bought out its top Japanese investor in the project in January and the rail line is now backed by Texas investor John Kleinheinz. Kleinheinz Capital Partners said Monday that the change is “good news” for the project.
“The first Trump Administration gave this project the green light, but after President Trump left office the project got hung up in the politics of the Biden Administration’s efforts to jam Amtrak and politics into the equation,” the company said in a statement. “We agree with Secretary Duffy that this project should be led by the private sector, and we will be proud to take it forward. This project is shovel-ready and will create significant new jobs and economic growth for Texas as part of President Trump’s efforts to boost the U.S. economy.”
Duffy called Amtrak’s funding of the project a “distraction” from its goal to improve existing services.
“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 in a statement.
Future of the Project
The FRA said connecting Dallas and Houston remains one of the “more exciting” opportunities for passenger rail in the U.S.
“Today’s announcement does not represent the end of FRA’s interest in new rail projects,” the department said in a statement. “FRA has an array of programs that can help with the development of new rail corridors, including high-speed rail routes, and will continue to work with stakeholders to develop cost-effective opportunities.”
A Texas Central rep said the federal government’s move to yank millions from the project wouldn’t derail plans.
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Conclusion
The Trump administration’s decision to pull funding for the Dallas-to-Houston bullet train project has significant implications for the future of high-speed rail in the United States. While the project’s fate remains uncertain, one thing is clear: the private sector will need to take the lead if the project is to move forward.
FAQs
Q: What is the Dallas-to-Houston bullet train project?
A: The Dallas-to-Houston bullet train project is a proposed high-speed rail line that would connect Dallas and Houston, with the goal of reducing travel time between the two cities to under 90 minutes.
Q: Why did the Trump administration pull funding for the project?
A: The Trump administration pulled funding for the project due to concerns about the project’s cost and feasibility, as well as its dependence on federal dollars for development work.
Q: What is the current status of the project?
A: The project’s future is uncertain, but Texas Central has stated that it will continue to move forward with the project, with the goal of securing private funding to replace the lost federal dollars.
