April 14, 2025 — Washington, D.C.
In a major cost-saving move, the U.S. Department of Transportation (DOT) has announced the termination of a federal contract tied to the long-delayed Texas high-speed rail project, saving taxpayers more than $60 million.
The decision, finalized this week, comes after years of delays, legal hurdles, and financing uncertainties that plagued the proposed Dallas-to-Houston bullet train, originally touted as a transformative transportation initiative for Texas.
A DOT spokesperson confirmed that the termination of the contract follows a comprehensive internal review, which found “persistent noncompliance with project milestones and a failure to demonstrate financial viability.”
“This action reflects our commitment to fiscal responsibility,” the DOT said in a statement. “By terminating this agreement, we are ensuring that taxpayer dollars are protected and reallocated to infrastructure projects that are ready for execution and grounded in accountability.”
The now-defunct contract was linked to preliminary development assistance and feasibility assessments under the Federal Railroad Administration’s oversight. The $60 million figure represents unspent or recovered federal funds that would have otherwise been directed toward the rail venture.
The Texas high-speed rail project, led by a private entity, Texas Central, has faced mounting criticism over its lack of progress since its announcement more than a decade ago. While it initially promised a 90-minute commute between Houston and Dallas using Japanese bullet train technology, the project has been hampered by land acquisition disputes, cost overruns, and financing gaps.
Critics have long called for more stringent oversight of federally supported infrastructure ventures, particularly those led by private companies seeking public subsidies.
“This is a victory for taxpayers and for common sense,” said Rep. Brian Wilson (R-TX), a vocal opponent of the project. “We need to prioritize projects that deliver real results — not funnel millions into an idea that’s been stuck on the tracks for years.”
Supporters of high-speed rail argue the cancellation could hurt long-term transportation innovation in the U.S., but even some former advocates acknowledged that the Texas project had struggled to meet basic benchmarks.
The DOT emphasized that this decision does not signal an end to federal support for high-speed rail overall but reflects a broader shift toward “outcomes-based funding and responsible investment in infrastructure.”
