In 12 Years, This $40 Billion High-Speed Rail Line in Texas Has Not Laid a Single Foot of Track
The decade-plus battle to bring high-speed rail to Texas could soon be over. On Tuesday, Transportation Secretary Sean Duffy delivered a blow to the project, known as Texas Central Railway, by rescinding a $63.9 million federal grant. Duffy called the project “a waste of taxpayer funds.”
The Texas Central Railway was unveiled in 2013 as a fully privately funded high-speed rail project connecting Dallas and Houston. Originally estimated to cost $10 billion, the project would be able to shuttle passengers between the state’s two largest cities in 90 minutes (versus nearly four hours in a car).Â
Like other high-speed rail projects before it, Texas Central has run into project delays and cost overruns. By 2019, the project’s investors updated their original cost estimates to $20 billion. In 2020, project estimates were updated again to $30 billion. A 2023 analysis by Baruch Feigenbaum, senior managing director of transportation policy at Reason Foundation (the nonprofit that publishes Reason), estimates that the project’s operating and construction costs will be at least $41.6 billion.Â
In September 2024, the Biden administration awarded Amtrak a $64 million grant to move the project forward. Despite this federal support, Japanese investors backed out of the project after claiming to have lost $272 million.Â
Kleinheinz Capital Partners, an investment firm headed by Fort Worth businessman John Kleinheinz, “bought its Japanese investors out of the project in January,” reports The Texas Tribune, to become the rail line’s controlling interest. Andy Jent, a representative of Texas Central, told the Tribune that the project had acquired 25 percent of the land it needed to build the route.Â
Despite Tuesday’s announcement from the Transportation Department, which also directed Amtrak to rescind project leadership, the project appears ready to forge ahead. “We agree with Secretary Duffy that this project should be led by th
Article from Reason.com
The Reason Magazine website is a go-to destination for libertarians seeking cogent analysis, investigative reporting, and thought-provoking commentary. Championing the principles of individual freedom, limited government, and free markets, the site offers a diverse range of articles, videos, and podcasts that challenge conventional wisdom and advocate for libertarian solutions. Whether you’re interested in politics, culture, or technology, Reason provides a unique lens that prioritizes liberty and rational discourse. It’s an essential resource for those who value critical thinking and nuanced debate in the pursuit of a freer society.
