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The U.S. Department of Transport announced Monday that it will save more than $60 million to U.S. taxpayers by ending grants to help fund Texas’ high-speed rail projects.
Transport Secretary Sean Duffy announced that an agreement between the Federal Railway Administration (FRA) and Amtrak has reached an agreement that ends the $63.9 million grant.
The grant was awarded to Amtrak under the Corridor Identification and Development Program for the Amtrak, previously known as the Texas Central Railroad Project.
“We are pleased to announce that the FRA and Amtrak agree that undertaking this project is a waste of taxpayer funds and a distraction from Amtrak’s central mission to improve existing sub-par services,” Duffy said. “If the private sector believes this project is feasible, they should move forward with pre-construction work rather than relying on Amtrak and American taxpayers.
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Transport Secretary Sean Duffy said the end of the contract would save $60 million. (AP/Jacquelyn Martin)
The Texas Central Railroad Project was originally announced as a private venture, but its cost estimates increased dramatically, and the project began to rely on federal dollars and Amtrak for its development.
Dot adds that the project’s capital cost is thought to be above $40 billion, and that the price makes construction unrealistic. This cost also makes the project a dangerous venture for taxpayers.
Amtrak has been recovering in ridership since the pandemic, but is struggling with an operating loss.
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Amtrak is struggling with the operational deficit, but ridership has recovered since the Covid-19 pandemic. (AP/file)
Major US railroad companies also experience operational challenges, including corrosion in the northeast corridors and loss of the horizon coach fleet to delays.
The FRA made Amtrak’s issue a top priority.
Amtrak could take on construction activities under the Biden administration, while also considering large-scale loans undertaken by the US government, Dot said.
According to The Dot, leaving the Texas project will allow Amtrak to focus on much-needed improvements.
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Amtrak is struggling with an operating loss. (Graeme Sloan/Bloomberg via Getty Images)
“Connecting Dallas and Houston continues to be one of the more exciting opportunities for the new US passenger railroad,” said Kyle Fields, FRA’s chief advisor. “Today’s announcement reflects the recognition by Amtrak and the FRA that federalising the proposal for the Texas Central Railroad is not the best use of taxpayer funds.”
Amtrak did not respond to a Fox News Digital request for comments on the issue.
According to DOT, FRA will continue to search for new rail projects.
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The $60 million saved by terminating the project will be reassigned for other projects “supporting safe, efficient and reliable rail transport.”
Greg Wehner is a news reporter for Fox News Digital.
Story tips and ideas can be sent to greg.wehner @fox.com and Twitter @gregwehner.
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