Dot saves taxpayers over 60 million by ending the high-speed rail contract in Texas

The US Transport Ministry announced on Monday that American taxpayers will save over $ 60 million by ending a scholarship to finance a high-speed railway project in Texas.

The transport secretary Sean Duffy made the announcement and said that an agreement between the Federal Railroad Administration (FRA) and Amtrak to cancel the grant of $ 63.9 million.

The scholarship was awarded Amtrak as part of the Corridor Identification and Development Program for the Amtrak Texas High-Speed ​​Rail Corridor, which is previously known as Texas Central Railway Project.

“I am pleased to be able to tell you that FRA and Amtrak agree that drawing this project is a waste of taxpayers’ money and a distraction of Amtrak’s nuclear mission to improve the existing sub -neighborhood services,” said Duffy. “If the private sector is of the opinion that this project is feasible, you should do the work before building instead of relying on Amtrak and the American taxpayer to clear it out. My department will continue to seek to save federal dollar and prioritize efficiency.”

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The transport secretary Sean Duffy said that the termination of the contract would save 60 million US dollars. (AP/Jacquelyn Martin)

The Texas Central Railway project was originally announced as a private company, but its cost estimates rose dramatic, and the project became dependent on the federal dollar and Amtrak for its development.

Dot said that the capital costs for the project are more than 40 billion US dollars and added that the Baubau price makes BABAUBAU unrealistic. The costs also make the project a risky undertaking for taxpayers.

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Amtrak has to struggle with surgical deficits, although the driver has recovered since Covid 19 pandemic. (AP/file)

The main railway company in the USA also had operational challenges, including the loss of its Horizon coach fleet against corrosion and delays in the northeastern corridor.

FRA has made the remedy of Amtrak’s problems a top priority.

Amtrak looked at massive loans under the bidet management, which the US government and grants sign in order to be able to take on construction activities, said Dot.

If you go away from the Texas project, Amtrak can concentrate on urgently needed improvements.

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Amtrak has to struggle with operational deficits. (Graeme Sloan/Bloomberg via Getty Images)

“The connection between Dallas and Houston is still one of the most exciting opportunities for new passenger rail in the USA,” said Kyle Fields, chief of chief of FRA. “Today’s announcement reflects an recognition of Amtrak and FRA that the federalization of the Texas Central Railway proposal is not the best use of taxpay financing.”

Amtrak did not answer the request from Fox News Digital for comments on this matter.

According to the point, the FRA will continue to search for new rail projects.

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The 60 million US dollars, which was saved by the end of the project, are re -assigned for other projects that “support safe, efficient and reliable rail transport transports,” added the DOT.