Dallas to Houston Bullet Train Project Acquired by Private Investment Firm after Federal Funding Loss

A private investment firm, Kleinheinz Capital Partners Inc., will take over the Texas bullet train project from Dallas to Houston after federal funding fell through on the previous agreement between Amtrak and the Federal Railroad Administration. The company’s CEO and President, John Kleinheiz, bought out the lead Japanese investors in January and is looking to move the project forward after years of stalling. This 200 mph train would connect Dallas and Houston in under 90 minutes, with a planned stop along the way in Grimes County.

The U.S. Department of Transportation claims that the project initially began as a private venture but became dependent upon federal funding, particularly as costs to acquire land and build the rail line continued to increase, ultimately putting responsibility back on taxpayers. 

How is Eminent Domain Impacted by the Dallas to Houston Bullet Train’s Shift in Ownership?

About 25% of the land needed for the bullet train project has already been acquired for the 240-mile rail line, which is about 1,600 parcels, including around 500 single-family homes. Despite a shift back to private ownership, many potentially impacted landowners along the train’s path remain resistant toward the project, and the land acquisition process could remain slow.

How is the 2025 Texas Legislature Impacting the Dallas to Houston Bullet Train Project?

Rail projects are a big topic for the 89th Legislature’s session, where several bill authors are aiming to dismantle or build up the foundation for high-speed rail projects across the state. These bill results may better determine the rail line’s progress as the legislative session comes to a close in early June 2025.

House Bill 1402 – Written by Rep. Cody Harris, this bill aims to stop state or local tax money from being used to fund privately-owned high-speed rail lines, specifically siting the Dallas to Austin to San Antonio bullet train along I-35.

House Bill 663 – Written by Rep. Brian Harrison, this bill could limit eminent domain powers for high-speed rail projects.

House Bill 483 and Senate Bill 424 – Written by Rep. John Bucy lll and Sen. Sarah Eckhardt, these bills would call for the Texas Department of Transportation to establish development agreements with a private organization to build and operate high-speed rails.

Resources:

• Austin Business Journal: “Texas bullet train backer vows to push ‘shovel ready’ project forward after feds pull plug”
• Austin American-Statesman: Will high-speed bullet train between Dallas and Houston ever become reality?”
• Austin American-Statesman: “Trump admin cuts $60M for bullet train. Can railway from Dallas to Houston still happen?”
• Austin American-Statesman: “A Texas bullet train? Why a high-speed rail proposal could face legislative roadblocks”
• Houston Public Media: “Houston-to-Dallas high-speed rail project could be derailed by proposed Texas law”