WASHINGTON (dpa-AFX) - The Federal Railroad Administration has terminated the $63.9 million grant awarded to Amtrak under the Corridor Identification and Development Program for the Amtrak Texas High-Speed Rail Corridor project.
Previously known as the Texas Central Railway project, it was originally announced as a purely private venture, but as the cost estimates dramatically increased, the proposal became dependent on Amtrak and federal funding for development work.
The project capital cost is now believed to be more than $40 billion, making construction unrealistic and a risky venture for the taxpayer, according to the Department of Transportation.
U.S. Transportation Secretary Sean P. Duffy announced 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. '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.'
While Amtrak ridership has recovered since the pandemic, it has struggled with significant operating deficits. In addition, Amtrak has had high-profile operational challenges, including delays on its own Northeast Corridor and the loss of its Horizon coach fleet to corrosion.
The Transportation Department said in a press release that fixing these issues is a top priority for FRA.
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