Transportation Secretary Sean Duffy said the contract termination will save $60 million. (AP/Jacquelyn Martin)
The Texas Central Railway project was originally announced as a private venture, but its cost estimates increased dramatically, and the project became dependent on federal dollars and Amtrak for its development.
DOT said the capital cost for the project is believed to be more than $40 billion, adding that the price makes construction unrealistic. The cost also makes the project a risky venture for taxpayers.
Amtrak has struggled with operating deficits, though ridership has recovered since the pandemic.
3 FAMILY MEMBERS STRUCK AND KILLED BY AMTRAK TRAIN NEAR PHILADELPHIA: POLICE
Amtrak has struggled with operating deficits. (Graeme Sloan/Bloomberg via Getty Images)
"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. "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."
Amtrak did not respond to Fox News Digital’s request for comment on the matter.
According to the DOT, the FRA will continue to seek out new rail projects.
CLICK HERE TO GET THE FOX NEWS APP
The $60 million saved by terminating the project will be reallocated for other projects that "support safe, efficient, and reliable rail transportation," the DOT added.
Greg Wehner is a breaking news reporter for Fox News Digital.
Story tips and ideas can be sent to Greg.Wehner@Fox.com and on Twitter @GregWehner.
Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox
Subscribed
You've successfully subscribed to this newsletter!
https://www.foxnews.com/politics/dot-saves-taxpayers-over-60m-terminating-texas-high-speed-rail-contract