Federal Government Withdraws Grant for Texas Rail

The U.S. Department of Transportation has withdrawn a $63.9 million federal grant intended for the Texas Central Railway's high-speed rail project between Dallas and Houston. Transportation Secretary Sean Duffy criticized the project as a 'waste of taxpayer funds' and emphasized that it should proceed with private funding instead. Initially projected to cost $30 billion, the estimated cost has now risen to over $40 billion, complicating federal involvement. The grant was part of the Federal Railroad Administration's Corridor Identification and Development Program, and its cancellation has shifted the project's future entirely to private hands, with Kleinheinz Capital Partners expressing support for this direction. Despite setbacks, the project remains 'shovel-ready' with promises of economic growth and job creation. The rail line, initially supported by the Biden administration, faces challenges in land acquisition and funding, yet remains a priority for Texas Central and its investors.