The expansion of Austin’s light rail system is expected to cost $8.2 billion, and the federal government has long been expected to provide over $4 billion to cover the construction costs. But the path to securing federal funding for the landmark project appears uncertain, and a contingency plan is not being discussed in the event those dollars aren’t awarded, according to Austin Transit Partnership officials.
ATP said the light rail project — focused largely on bringing more trains to Central Austin — is on track to get federal funding in early 2028. However, the program from which ATP hopes to secure federal funding hasn’t handed out grants to new projects since President Donald Trump returned to the Oval Office in January 2025. ATP said it still needs to advance to the engineering phase of the project next year before funding can be awarded, indicating it is premature to assume anything about a decision from the feds.
ATP officials said they aren’t having conversations about a contingency plan if they don’t secure funding by 2028. They said their conversations are focused on advancing the project under the idea that the federal government will eventually provide funding.
Officially, it’s planned that the federal government will cover 49.4% of the price tag. Under that plan, funding would be awarded through the Capital Investment Grants program, which is overseen by the Federal Transit Administration. The path to funding from the CIG program is a competitive process with projects from other cities.
