If $40 billion is too expensive to create a high speed rail in Texas, then imagine the Feds giving $200 billion for a high speed rail in California. Newsom and his corrupt train folks must realize the train to nowhere is dead—it has received the last dime from the Feds. I bet Musk and folks will try to get part of the money giving the scam artists in Sacramento.
“The release says the capital cost of the Texas Central project is “now believed to be over $40 billion — making construction unrealistic and a risky venture for the taxpayer.” It also says the FRA “will be able to reallocate the grant’s approximately $60 million balance … to other projects that support safe, efficient, and reliable rail transit.”
The money involved had not been distributed, because the grants are used to reimburse spending by the recipients. It will be returned to the general Corridor ID funding set-aside; an FRA spokesman said no information was immediately available on how the money might be used or a timeline for when that might occur.”
How much more money will Newsom spend till he admits the high speed train is dead?
FRA rescinds grant for Texas high speed project (updated)
Transportation secretary calls Texas Central ‘a waste of taxpayer funds,’ says development is up to private sector
David Lassen, Trains, 4/14/25 https://www.trains.com/trn/news-reviews/news-wire/fra-rescinds-grant-for-texas-high-speed-project/
WASHINGTON — Saying the Federal Railroad Administration and Amtrak agree the project “is a waste of taxpayer funds,” U.S. Transportation Secretary Sean Duffy announced today (April 14, 2025) that the government is rescinding a $63.9 million grant for the proposed high-speed rail line between Dallas and Houston.
“The Texas Central Railway project was proposed as a private venture,” Duffy said in a press release. “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 release says the capital cost of the Texas Central project is “now believed to be over $40 billion — making construction unrealistic and a risky venture for the taxpayer.” It also says the FRA “will be able to reallocate the grant’s approximately $60 million balance … to other projects that support safe, efficient, and reliable rail transit.”
The money involved had not been distributed, because the grants are used to reimburse spending by the recipients. It will be returned to the general Corridor ID funding set-aside; an FRA spokesman said no information was immediately available on how the money might be used or a timeline for when that might occur.
Trains News Wire has also requested comment from Amtrak.
Kleinheinz Capital Partners, led by CEO John Kleinheinz and described as the lead investment sponsor in Texas Central, said in a statement the decision is “good news for the overall project.”
“The first Trump Administration gave this project the green light, but after President Trump left office the project got hung up in the politics of the Biden Administration’s efforts to jam Amtrak and politics into the equation,” the company said in its statement. “We agree with Secretary Duffy that this project should be led by the private sector, and we will be proud to take it forward. 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.”
Not surprisingly, the group Texans Against High Speed Rail hailed the decision.
“This decision puts a nail in the coffin in what had become the biggest bait and switch to be perpetrated on taxpayers in generations,” Judge Trey Duhon, the group’s president, in a social media post. “What was originally conceived as a ‘completely privately funded’ project was being foisted on taxpayers, and we are thankful that the DOT and FRA recognized this for what it was — a bad idea.”
Duffy called the Texas Central project “a distraction from Amtrak’s core mission of improving its existing subpar services,” while the release noted Amtrak’s continuing deficits and what it called “high-profile operational challenges, including delays on its own Northeast Corridor and the loss of its Horizon coach fleet to corrosion.”
Amtrak announced it was partnering with Texas Central to evaluate the project in August 2023, during a period when the company was largely dormant following the departure of CEO Carlos Aguilar in June 2022. [See “Amtrak working with Texas Central …,” News Wire, Aug. 9, 2023]. The project received the federal grant for planning under the FRA’s Corridor Identification and Development program in September 2024. Amtrak had begun looking for a “delivery partner” for the project earlier this year [see “Amtrak begins process …,” News Wire, Feb. 27, 2025].
When announced, the project seemed to be an ideal market for high-speed rail, capable of competing with airlines and providing a faster alternative to driving, promising a 240-mile trip in less than 90 minutes. But it ran aground in the face of opposition from landowners along the route, as well as Texas legislators. It eventually won a court case determining that it had the right to obtain property through the power of eminent domain, but by the time the Texas Supreme Court made that ruling, the company was largely defunct [see “State Supreme Court affirms Texas Central’s right …,” News Wire, June 27, 2022].
The Texas legislature, which had previously passed a bill prohibiting public funding for the project, has taken further aim at Texas Central in its current session. It is considering a law that would prevent any public money from being spent to alter roadways to accommodate construction of the high-speed route. [See “Texas legislation on roadways …,” News Wire, April 2, 2025].
House legislators have also subpoenaed financial and other information from Texas Central. Members of the House Transportation committee took that action because they were dissatisfied with answers from a Kleinheinz Capital representative at a hearing on a bill to require such information. [See “Texas lawmakers subpoena …,” News Wire, April 4, 2025].
The DOT announcement does acknowledge the basic soundness of the concept.
“Connecting Dallas and Houston remains one of the more exciting opportunities for new passenger rail in the United States,” FRA Chief Counsel Kyle Fields said in the DOT release. “Today’s announcement reflects a recognition by Amtrak and FRA that federalizing the Texas Central Railway proposal is not the best use of taxpayer funding.”
It is the second significant action by the DOT under Duffy regarding high speed rail, both of which address funding. In February, Duffy announced the FRA would conduct a “compliance review” of the California High-Speed Rail Authority,” suggesting already-awarded federal funds could be withdrawn based on the outcome. [See “FRA to examine …,” News Wire, Feb. 20, 2025].
The Dems and the RINOs gave the money to California for the train to nowhere. True conservatives will not repeat the same mistake in Texas.
Newsome cannot admit the high speed rail is dead in California. If he does, that is just another nail in the coffin in his bid for the presidency. California shoud have done what Texas is doing concerning high speed rail projects.