The U.S. Department of Transportation has officially pulled the plug on a controversial $63.9 million grant for the proposed Texas high-speed rail project. The route, envisioned to connect Dallas and Houston, faced mounting criticism over its bloated budget and growing dependence on federal funding. The move is being hailed as a major win for taxpayers.
Transportation Secretary Sean Duffy confirmed that the project’s contract has been terminated, stating, “I am pleased to announce that FRA and Amtrak 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. My department will continue to look for every opportunity to save federal dollars and prioritize efficiencies.”
Originally pitched as a private venture, the high-speed rail has ballooned into a $40 billion taxpayer liability with no completion date in sight. The DOT’s decision sends a strong message that runaway spending on unsustainable projects will not be tolerated.
Duffy noted that the Biden administration approved the original grant despite the project’s instability and reliance on speculative funding. He stressed that federal dollars should be used to upgrade existing infrastructure, not fund “pie-in-the-sky” transportation dreams that shift financial risk onto American families.
The high-speed rail project has been plagued by delays, lawsuits, and financing setbacks since its inception. Critics argue that the train line, modeled after Japan’s Shinkansen system, never had the financial or logistical backing to succeed in the U.S. market. Several local governments along the proposed route also opposed the project, citing eminent domain concerns and lack of transparency.
Supporters of the cancellation say it’s time to prioritize transportation solutions that serve the public now—not decades from now. Redirecting funds away from speculative rail schemes toward roads, bridges, and current rail service improvements offers a more realistic path forward.
With the contract officially terminated, the Department of Transportation has already begun redirecting the unspent funds. Taxpayers will save nearly $64 million thanks to the decision to stop funding a project that increasingly appeared to be going nowhere fast.
