DOT saves taxpayers over $60M by terminating Texas high-speed rail contract
The U.S. Department of Transportation made a significant announcement on Monday regarding the termination of a grant that was set to fund a high-speed rail project in Texas. This decision is expected to save American taxpayers over $60 million. Transportation Secretary Sean Duffy shared that an agreement had been reached between the Federal Railroad Administration (FRA) and Amtrak to end the $63.9 million grant allocated for the Amtrak Texas High-Speed Rail Corridor, formerly known as the Texas Central Railway project.
Duffy emphasized that the project had become a burden on taxpayer funds and was diverting attention from Amtrak’s primary goal of enhancing its current services. He urged the private sector to take charge of the pre-construction work if they believed in the feasibility of the project, rather than relying on federal funds and Amtrak for support. The Department of Transportation is committed to identifying ways to save federal resources and prioritize efficiency in all endeavors.
Initially conceived as a private initiative, the Texas Central Railway project experienced a significant increase in cost estimates, leading to a reliance on federal funding and Amtrak for its progress. The Department of Transportation highlighted that the projected capital cost of over $40 billion rendered the construction highly unrealistic and posed a substantial risk to taxpayers. Amtrak has been grappling with operational deficits, despite witnessing a recovery in ridership following the challenges posed by the pandemic.
Amid operational setbacks such as the corrosion-related loss of the Horizon coach fleet and delays in the Northeast Corridor, the FRA has made addressing Amtrak’s operational issues a key focus. Under the Biden administration, Amtrak explored options like substantial government-backed loans and grants to facilitate construction activities. By stepping away from the Texas project, Amtrak can concentrate on essential enhancements to ensure reliability for its passengers.
FRA Chief Counsel Kyle Fields acknowledged the potential for passenger rail growth by connecting Dallas and Houston, affirming that federalizing the Texas Central Railway proposal was not the most prudent use of taxpayer funds. While Amtrak did not provide a response to inquiries from Fox News Digital, the FRA expressed its commitment to pursuing new rail initiatives. The $60 million saved from terminating the project will be redirected to support other ventures that promote safe, efficient, and dependable rail transportation.
In conclusion, the decision to end the grant for the high-speed rail project in Texas signifies a strategic shift towards optimizing taxpayer funds and prioritizing essential rail infrastructure projects. This move underscores the Department of Transportation’s dedication to fostering a sustainable and efficient transportation network for the benefit of all Americans.
