Trump admin cuts $60M for bullet train. Can railway from Dallas to Houston still happen?
Amid widespread federal funding cuts under President Donald Trump's administration — which include the elimination of hundreds of programs and thousands of job losses — the Department of Transportation has nixed $60 million in federal funding for the proposed high-speed rail project intended to connect Houston and Dallas in just 90 minutes, according to Texas Tribune.
For nearly four decades, Texans have pushed for a bullet train to connect the state's largest cities. In late 2023, that vision appeared closer to reality when former President Joe Biden announced $8.2 billion in new grants as part of a broader nationwide rail initiative.
Now that funding has been rescinded, and even before the reversal, the project faced mounting setbacks. The parent company recently reported ongoing struggles with land acquisition and changes in ownership.
High-speed railway transportation, also known as bullet trains, can travel at speeds of up to 200 mph.
In Texas, the initiative would connect the state's two largest cities, Dallas and Houston, shortening the travel time from hours to 90 minutes. Nearly 100,000 residents travel the 240-mile journey between the two cities each week — and some even more frequently, according to a 2012 study conducted by NYU's Rudin Center for Transportation.
With stations planned at The Cedars neighborhood near Downtown Dallas and the Northwest Mall site in Houston, the train would depart every 30 minutes during peak periods each day and hourly during off-peak periods, according to Texas Central, a Dallas-based company that devised the plan. The train would also make one stop along the route in Grimes County.
Even with federal support, the bullet train came with a hefty price tag — more than 560 times the funding allocated under the Biden administration. The project is expected to cost at least $33.6 billion, according to an estimate from the Reason Foundation.
Originally, the high-speed rail line between Houston and Dallas was pitched as a privately funded venture, led by Texas Central Railway. The plan relied on private investors, both domestic and international, to finance the bulk of the project with minimal public funding. But as costs soared, it became clear that private investment alone wouldn't be enough.
The company eventually turned to the federal government, seeking grants and loans to help close the gap, which now seems to have been pried back open after the funding was rescinded.
During a House committee hearing in March, Texas Central — the private company behind the high-speed rail project — confirmed it had bought out its Japanese investors. Company representative Andy Gent announced that the project is now backed by Texas investor John Kleinheinz.
The hearing also revealed that Texas Central has secured only about one-quarter of the land needed for the 240-mile rail line. To date, the company has acquired roughly 1,600 land parcels, including around 500 single-family homes.
The bullet train project has sparked debate for decades, with controversy following it from the beginning.
In 2022, the Texas Supreme Court ruled that Texas Central qualifies as a public interurban electric railway company, granting it the power of eminent domain. This allows the company to acquire private land for construction, including residential properties, farms and ranches.
One Dallas-area farmer told CNBC last year that he struggles to sleep at night, fearing the rail line could cut through his property.
Despite the ongoing disputes, Gent attributed project delays to the COVID-19 pandemic. He also stated that Texas Central now needs more time "to figure out if we can put the bigger transaction together with the Trump administration and the state of Texas."
Although the federal funding was rescinded — a move praised by many for relieving taxpayers — it wasn't the deciding factor in whether the railway would become a reality.
For now, the project is likely to remain at a stalemate as the company continues its efforts to acquire more land and secure additional funding.
This article originally appeared on Austin American-Statesman: Texas high-speed rail project loses over $60M in federal funding
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