The United States Department of Transportation announced Monday that it will save US taxpayers for more than $ 60 million at the end of a subsidy to help finance a high -speed rail project in Texas.
The Secretary of Transportation, Sean Duffy, made the announcement, saying that an agreement had been reached between the Federal Railway Administration (FR) and Amtrak to finish the subsidy of $ 63.9 million.
The subsidy was granted to Amtrak under the Identification and Development program of the corridor for the high speed rail corridor of Amtrak Texas, previously known as the Texas Central Railroad project.
“I’m glad to announce that Fra and Amtrak agree that the subscription of this project is a waste of taxpayer funds and a distraction of Amtrak’s central mission to improve their existing lower services,” Duffy said. “If the private sector believes that this project is feasible, they should take the work prior to the construction forward, instead of relying on Amtrak and the US taxpayer to rescue them. My department will continue to look for all things.”
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The Secretary of Transportation, Sean Duffy, said that the termination of the contract will save $ 60 million. (AP/Jacquelyn Martin)
The Texas Central Railroad Project was originally announced as a private company, but its cost estimates increased dramatically, and the project became dependent on federal and AMTRAK dollars for its development.
Dot said that the cost of capital for the project is believed to be more than $ 40 billion, and added that the price makes the construction not reluctant. The cost also makes the project a risky company for taxpayers.
Amtrak has fought with operational deficits, although the amount of passengers has recovered its pandemic.
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Amtrak has fought with operational deficits, he thought that the number of passengers has recovered his COVID-19 pandemic. (AP/File)
The main railway company in the United States has also experienced operational challenges, including the loss of its Horizon Coach fleet to corrosion and delays in the Northast corridor.
Fra has made solving Amtrak problems a priority.
Amtrak, under the Biden administration, considered massive loans signed by the United States government, as well as subsidies, to be able to assume construction activities, Dot said.
Moving away from the Texas project allows Amtrak to focus on the very necessary improvements to be more reliable for its runners, according to the DOT.
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Amtrak has fought with operational deficits. (Graeme Sloan/Bloomberg through Getty Images)
“Connecting Dallas and Houston is still one of the most exciting opportunities for the new passenger railroad in the United States,” said FRA lawyer Kyle Fields. “Today’s announcement reflects a recognition of Amtrak and Fra that the federalization of the proposal of Texas Central Railroad is not the best use of taxpayers’ financing.”
Amtrak did not respond to the request for comments from Fox News Digital on the matter.
According to the DOT, the FR will continue to look for new railway projects.
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The $ 60 million saved at the end of the project will meet for other projects that “support safe, efficient and reliable rail transport,” added the DOT.