Dallas Houston High Speed Rail Loses Ally and Federal Grants

April 15, 2025 – ​The U.S. Department of Transportation has rescinded a $63.9 million federal grant initially awarded for the proposed high-speed rail line between Dallas and Houston. This decision, announced on April 14, 2025, follows an agreement between the Federal Railroad Administration and Amtrak to terminate the funding designated for the Amtrak Texas High-Speed Rail Corridor, previously known as the Texas Central Railway project.

Transportation Secretary Sean P. Duffy labeled the project a “waste of taxpayer funds” and emphasized that it was originally proposed as a private venture. He stated, “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.”

The high-speed rail initiative aimed to connect Dallas and Houston with a 240-mile line utilizing Japanese Shinkansen bullet train technology, promising travel times under 90 minutes. However, escalating capital cost estimates—now exceeding $40 billion—have raised concerns about the project’s financial viability.

Texas Central, the company behind the project, has not issued a statement regarding the withdrawal of federal support. Notably, Kleinheinz Capital Partners, the lead investor, expressed agreement with the decision, asserting that the project should proceed under private sector leadership. ​

The project’s future remains uncertain amid ongoing challenges, including land acquisition issues and legislative efforts to restrict public funding for related infrastructure modifications. Texas Central has secured only about 25% of the necessary land for the rail line and faces opposition from landowners and state lawmakers.