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Trump officials cut planning grant for Texas high-speed rail between Dallas and Houston

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Trump officials cut planning grant for Texas high-speed rail between Dallas and Houston


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DALLAS — President Donald Trump’s administration on Monday terminated a federal grant to help fund a long-sought high-speed rail line between Dallas and Houston — saying that if the embattled project moves forward, it will have to do so without federal help at this stage.

The U.S. Department of Transportation nixed a $63.9 million planning grant for the proposed Texas Central route under an agreement between the Federal Railroad Administration and Amtrak. Transportation Secretary Sean Duffy said the two agencies “are in agreement that underwriting this project is a waste of taxpayer funds and a distraction from Amtrak’s core mission of improving its existing subpar services.”

“The Texas Central Railway project was proposed as a private venture,” Duffy said. “If the private sector believes this project is feasible, they should carry the pre-construction work forward, rather than relying on Amtrak and the American taxpayer to bail them out.”

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Kleinheinz Capital Partners, the lead investor in Texas Central, said Monday’s announcement is “good news for the overall project.”

“We agree with Secretary Duffy that this project should be led by the private sector, and we will be proud to take it forward,” the company said in a statement. “This project is shovel-ready and will create significant new jobs and economic growth for Texas as part of President Trump’s efforts to boost the U.S. economy.”

The Texas Central project — first pitched in 2009 as a way to ferry travelers between the state’s two largest urban areas within 90 minutes — has long faced stiff resistance from landowners along the route and state lawmakers who have sought to kill the project.

Texas legislators have filed bills aimed at thwarting the rail line. Meanwhile, the Texas House Transportation Committee subpoenaed Texas Central representatives for information about the company’s finances among other matters — and are set to hear from the company on Thursday.

The project has struggled to obtain the land necessary to build the line as the estimated cost ballooned past $30 billion from an earlier $12 billion estimate. The U.S. Department of Transportation on Monday put that cost north of $40 billion.

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Texas Central had shown signs of life in recent years when Amtrak revived the project following a leadership exodus.

The company bought its Japanese investors out of the project in January, Andy Jent, a Texas Central representative, told state lawmakers in March. Fort Worth investor John Kleinheinz is now the lead investor in the project, Jent said. Texas Central has acquired about 25% of the parcels needed to build the route, he said.

Peter LeCody, who heads the organization Texas Rail Advocates, was optimistic that the project would move forward despite the lost federal funds.

“Can the private sector do this? Probably,” LeCody said. “Will it need help from any other source? Maybe.”

Disclosure: Texas Central has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here.

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Texas sues Netflix for allegedly spying on kids, addicting users

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Texas sues Netflix for allegedly spying on kids, addicting users


Netflix was sued Monday (May 11) by Texas Attorney General Ken Paxton, who accused the streaming company of spying on children and other consumers by collecting their data without consent, and designing its platform to be addictive. Ram Nabong reports.



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Texas sues Netflix, alleges platform spied on kids and collected data

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Texas sues Netflix, alleges platform spied on kids and collected data


The state of Texas announced a lawsuit against streaming giant Netflix on Monday, accusing the company of spying on children and other consumers by collecting their data without consent and designing the platform to be addictive.

Texas claims that Netflix has falsely represented to consumers that it didn’t collect or share user data while it actually tracked and sold viewers’ habits and preferences to commercial data brokers and advertising technology companies.

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The lawsuit, filed by Texas Attorney General Ken Paxton, claims that “Netflix’s endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetize the data for a handsome profit.”

The state of Texas announced a lawsuit against streaming giant Netflix on Monday. (Nikos Pekiaridis/NurPhoto via Getty Images)

“When you watch Netflix, Netflix watched you,” Texas added in the lawsuit.

NETFLIX CO-FOUNDER REED HASTINGS TO STEP DOWN, DEPARTURE IS ‘SPOOKING INVESTORS’

Ticker Security Last Change Change %
NFLX NETFLIX INC. 85.39 -2.10 -2.40%

The complaint quotes comments made by former CEO Reed Hastings who said in 2020, while he was still leading the streaming company, that “we don’t collect anything,” amid questions over Big Tech companies’ data collection practices.

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Netflix was also accused of quietly using “dark patterns” to keep users watching on its platform, such as an autoplay feature that starts a new show after a different show ends.

NETFLIX RAISES SUBSCRIPTION PRICES ACROSS ALL PLANS

Texas Attorney General Ken Paxton filed the lawsuit. (Cheney Orr/Reuters)

Paxton said in a press release that Netflix “has built a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent, and my office will do everything in our power to stop it.”

The attorney general said he’s charging Netflix under the state’s Deceptive Trade Practices Act and seeks to require Netflix to stop the unlawful collection and disclosure of user data, require Netflix to disable autoplay by default on kid’s profiles, and to secure injunctive relief and civil penalties.

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FOX Business reached out to Netflix for comment.

Reuters contributed to this report.



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6 people found dead inside a boxcar in Texas, officials say | CNN

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6 people found dead inside a boxcar in Texas, officials say | CNN


Six people were found dead inside a cargo train boxcar in a Texas city along the southern border on Sunday, officials said.

The bodies were found in a Union Pacific train at a rail yard in Laredo, around 160 miles south of San Antonio, just after 3:30 p.m. local time, said Jose Espinoza, a public information officer with the Laredo Police Department.

The circumstances of their deaths are unknown, said Laredo police spokesperson Joe Baeza, according to CNN affiliate KGNS, and an investigation is underway.

Union Pacific operates across the border and is the only railroad that services all access points into Mexico, according to the freight company’s website.

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Temperatures on Sunday afternoon in Laredo were in the low-mid 90s, though it’s unclear whether heat was a factor.

Union Pacific said it was saddened by the incident and is working closely with law enforcement to investigate.

Laredo police said they received a call around 3 p.m. from an employee at the Union Pacific rail yard, KGNS reported. The bodies were discovered during a routine rail car inspection, police said. No survivors were found.

CNN has reached out to Laredo police for more information.

“It’s a very early phase of the investigation. There’s not a lot to reveal right now,” Baeza said, KGNS reported.

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The immigration status and ages of the deceased are not yet known, Espinoza said.

US Customs and Border Protection referred CNN to the Laredo Police Department, saying “The incident remains under investigation by Laredo Police Department and Homeland Security Investigation and Texas Rangers.”

CNN has reached out to the Department of Homeland Security, HSI and the Texas Department of Public Safety.

“It’s a very unfortunate event,” Espinoza told CNN. “It was too many lives that were lost.”

This story has been updated with additional information.

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