Austin, Texas – A new Texas legislature bill could halt Project Connect, Austin’s multi-billion dollar light rail plan. The law, submitted by Republican state president Ellen Troxclair, seeks to limit the way local governments use tax revenues to fund major infrastructure projects.
The bill applies to local governments in Texas, but how Project Connect is funded could have a major impact on Austin.
Project Connect is designed to deal with Austin’s growing traffic congestion. Voters approved the plan in 2020, envisaging a vast light rail system.
“I think it’s really important to invest in mass transport if you want to maintain Austin’s growth for generations to come,” said Luis Hostalgo, partner at the Austin Transit Partnership.
However, the original plan to pledge 28-mile light rails for $7.1 billion faced rising costs and pushed prices up over $11 billion.
Related | Austins praise the new design plan for the light rail, and the city aims for completion date in 2033
The project was brought back to about 10 miles while maintaining the same budget.
“The city doesn’t have permission from voters to do the small projects they’re currently doing with a full tax hike,” according to Austin attorney Bill Aresher, who sued the city over Project Connect in 2024.
Troxclair filed HB 3879 to block local governments from using tax rate campaign funds to repay bond obligations, the main source of funding for Project Connect. The bill closes the project and taxpayers can sue if voter-approved plans are significantly changed.
In a statement to CBS Austin, Troxclair said, “Project Connect sounds like a mess… The project’s voters have been completely abandoned, replaced by miniature light rail lines, there is no downtown tunnel, there is no airport connection.
This is not Troxclair’s first attempt to stop the project. A similar bill was blocked by Democrats in its final session.
Aalscher said, “I think other lawmakers are looking at this and saying that the law shouldn’t allow it, and I think we need to stop it.”
Aalscher also said, “We’re in a pretty good way to do that, and we’re not allowing this fiasco of taxpayer bait and switch schemes to become a model used in other cities.”
Greg Carry, executive director of the Austin Transit Partnership, said, “The Austin Transit Partnership is steadily moving forward with the final design and construction of the Austin Light Rail. Austin voters have overwhelmingly approved this transformational project that will shorten travel times, promote much-needed housing development, and generate employment and statewide economic benefits. The need for more local investment in our transportation infrastructure will only increase as states and communities continue to grow.”
Project Connect faces several failed lawsuits. No action has been taken on the bill, but it is being monitored closely.
