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Federal grant cancellation fails to derail Texas high speed rail

John Bleasby
Federal grant cancellation fails to derail Texas high speed rail
RAILWAY PRO — An HSR link between Dallas and Houston would reduce travel time by more than 75 per cent, while taking 12,500 cars off the road each day.

The advocacy organization US HSR , “a 21st century, 17,000-mile national high speed rail (HSR) system” across the United States.

An important element is the 240-mile HSR connection between Dallas and Houston that would shorten a four-hour car trip to just 90 minutes. The link would also remove an estimated 12,500 cars per day from I-45. Yet while HSR construction is underway is California and Nevada, there is not a single dedicated, grade-separated HSR line presently operating in the country.

The U.S. Transportation Department was to play a role towards the planning of the Texas HSR link. Funding had been made in August 2024 through the federally-owned rail network Amtrak in partnership with Texas Central, the company originally behind the Houston-Dallas corridor concept.

However, on April 14, it it would now cut its $64 million . U.S. Transportation Secretary Sean Duffy said the Texas HSR capital costs have ballooned to over $40 billion, “making construction unrealistic and a risky venture for the taxpayer.”

Duffy added Amtrak and the Federal Railway Administration “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. 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.”

Peter LeCody, head of the Texas Rail Advocates organization, told he was still optimistic the project would move forward despite the absence of federal funding. This was quickly followed by news that a private investor would, in fact, step up and continue development work for the Texas HSR system.

John Kleinheinz, CEO of Fort Worth hedge fund Kleinheinz Capital Partners, announced he had acquired a controlling interest in Texas Central. He called the federal announcement “good news for the overall 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,” the company said in a statement.

Andy Jent, representing Texas Central and Kleinheinz Capital Partners, an April hearing of the Texas House Transportation Committee in Austin that if financing, permits and other issues were settled this current year, construction could be completed within about seven years.

HSR progress in Texas, and the Dallas-Houston route in particular, has experienced both progress and setbacks over the past 15 years. Some estimate potential economic benefits of over $30 billion from the HSR link. Proponents also suggest thousands of well-paying construction jobs and nearly 1,000 long-term positions could come to the region.

However, in June 2024, Dallas City Council passed a unanimous resolution opposing any new elevated rail through its Central Business District until an economic impact study was undertaken.

This was in response to concerns expressed by Hunt Realty Investments about the successful coexistence of the HSR line with both a proposed $5 billion mixed-use development and new $3 billion convention center adjacent to the planned line that is already under development.

In October, local media Dallas City Council approved a $500,000-plus contract with Boston Consulting Group to conduct the study.

In the meantime, expanding HSR connections with nearby Arlington has the support of that city’s mayor, Jim Ross. He local media the proposed 30-mile route from Dallas to Arlington is a necessary transportation project for the North Texas region, given the area’s rapid growth.

Going further, Texas Rep. John Bucy, representing parts of North Austin and Williamson County, filed  proposing an agreement between the Texas Department of Transportation and a private partner to create a rail line connecting Dallas, Austin and San Antonio.

Andy Byford, Amtrak’s Senior VP of high-speed rail development, last December that 30 per cent of the land required for the Dallas to Houston HSR line had been acquired. It now remains for private investors to carry on from there.

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