By Julie Tomascik
Editor

The Trump administration terminated a $63.9 million federal planning grant intended for the proposed high-speed rail line between Dallas and Houston.

The U.S. Department of Transportation, in agreement with the Federal Railroad Administration and Amtrak, called the project “unrealistic and a risky venture for the taxpayer.”

“The Texas Central Railway project was proposed as a private venture,” U.S. Transportation Secretary Sean P. Duffy said. “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 project was first introduced in 2009 as a 90-minute transit option between the state’s two largest metro areas, but it has faced years of pushback from rural landowners, lawmakers and advocacy groups.

Texas Farm Bureau (TFB) has long opposed unproven concepts like the high-speed rail, citing the negative impact on agriculture and property rights.

“The high-speed rail might move people faster, but it comes at a steep cost to farmers and ranchers who risk losing land that’s been in their families for generations,” said Regan Beck, TFB director of Government Affairs. “A private project like this that effects so many folks shouldn’t be brought back to life using governments funds.”

Land fragmentation, lack of local access, increased tax burdens, and impacts on wildlife are among the concerns for landowners across the 10 affected counties.

Texas Central, the company behind the rail project, has faced numerous challenges, including land acquisition issues and escalating costs. Initially estimated at $12 billion, the project’s cost has now surpassed $40 billion, according to the U.S. Department of Transportation.

In January, Texas Central bought out its Japanese investors, and now Fort Worth investor John Kleinheinz is now the lead investor in the project.

“We agree with Secretary Duffy that this project should be led by the private sector, and we will be proud to take it forward,” Kleinheinz Capital Partners said in a statement. “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.”