Plans to build a high-speed passenger rail line between Dallas and Houston are facing another setback with U.S. Transportation Secretary Sean Duffy’s announcement that the Federal Railroad Administration (FRA) is terminating a $63.9-million grant to Amtrak for the project.

The Amtrak Texas High-speed Rail Corridor was originally a privately-backed effort known as the Texas Central Railway. But as cost estimates for the project grew—now more than $40 billion, according to the U.S. Dept. of Transportation—Texas Central turned to Amtrak to help explore the proposed line’s viability. Proponents say it could carry passengers on the 236-mile trip in less than 90 minutes, reaching a top speed of 205 mph. 

FRA awarded the grant to Amtrak last year through a program aimed at helping establish new routes, restore service on former intercity passenger rail routes and enhance service on existing routes. 

Duffy said in a statement that FRA and Amtrak “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.” An Amtrak representative did not immediately answer questions about the project or whether Amtrak would continue involvement. 

“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.”

Texas Central leaders had initially pledged that they would build the line without any public funding, before its former CEO resigned and its board of directors disbanded. 

The grant termination comes after Duffy testified before the U.S. Senate Committee on Environment & Public Works earlier this month. He said that grant money that has already been obligated would continue to be paid out, but that DOT was reviewing a backlog of 3,200 grants that had been awarded but not yet finalized. 

It also follows the resignation last month of Amtrak CEO Stephen Gardner. Reuters and other news outlets reported that Gardner was pushed out by Trump administration officials. 

DOT officials said in their announcement that, despite the grant termination, FRA remains interested in new rail projects. The balance of the grant will be reallocated to other projects, they said.