The proposed Dallas-to-Houston bullet train, once heralded as a transformative piece of Texas infrastructure, suffered a significant setback this week. Federal officials announced the abrupt termination of a $63.9 million planning grant for the high-speed rail project, halting its momentum just months after it was awarded. This decision by the U.S. Department of Transportation signals a critical shift in the project’s future, and it also represents a victory for property owners who would have been directly affected by the train’s path.
The federal government’s decision to pull the funding was not made lightly. With costs now projected to exceed $40 billion, the Dallas-to-Houston bullet train had become an expensive and increasingly unrealistic proposition. Considering this decision, the project–which was originally proposed as a private venture–now faces an uncertain future, with little prospect of federal or Amtrak support moving forward.
However, for the many landowners along the proposed 240-mile route, there’s little reason to celebrate. In 2022, the Texas Supreme Court ruled 5-3 in favor of the Texas Central Railroad, Inc., in the case titled Miles v. Texas Central Railroad, Inc. In its ruling, the Court held that Texas Central could use eminent domain authority under law as a “common carrier” and as an “interurban electric railway.” Thus, railroad companies and other common carriers, even if they are private entities, can use the power of eminent domain.
Under the power of eminent domain, private entities in Texas can seize land from individual owners, often without their consent. However, landowners must be given “just compensation” for the property being taken under eminent domain. Just compensation is the current fair market value for a piece of property. The owner is entitled to the same amount of money they would receive if they placed the property on the open market. The train line threatens to carve through rural Texas, and could displace families, disrupt livelihoods, and forever alter the landscape of small communities.
Eminent domain is the legal power of the government to appropriate private property for public use, and it is already a controversial tool when used by the state for projects like highways or utilities. The involvement of private, for-profit companies in this process raises even more profound concerns. When private companies wield eminent domain, they do so with an eye on reducing costs and increasing profits, not necessarily with the public good in mind. Texas Central Railway, the company behind the bullet train, would have been able to bypass negotiations with landowners, using the government’s power to seize land in a bid to streamline the construction process. If the project goes forward, it is likely that many of these property owners will have little recourse.
Advocates of the bullet train argue the project will bring substantial public benefits, including faster travel times between Dallas and Houston, economic growth, and job creation. Yet, the truth is that those benefits would have come at significant cost to the rights of individual property owners, and not just those who reside and work along the proposed route. The erosion of property rights in any circumstance can set a dangerous precedent for future abuses or violations, making it easier for private companies to encroach on personal property for their own benefit.