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Austin’s light rail project, known as Project Connect, hit a major federal milestone that positions the multibillion-dollar initiative for on-time construction.
The details: The Federal Transit Administration awarded the project a “Medium-High” rating in its FY 2026-27 funding recommendations—the highest given in this year’s large-project review.
ATP CEO Greg Canally said the rating is a “key step,” signaling strong viability as the project seeks $4.1 billion in federal funding, or roughly half its total cost.
A closer look: The federal ranking criteria include an assessment of the project’s plans for land use and economic development.
ATP has partnered with the city to advance land use policies that support transit-oriented development.
Recent local changes, including eliminating parking minimums and creating new TOD zoning overlays, are helping shape mixed-use, walkable districts along the future line.
Of note: ATP and the city are also overhauling the permitting process to reduce delays, aiming to cut review times from years to months.
Utility agreements, risk planning and preconstruction work are underway as ATP targets a 2027 construction start and 2033 opening.
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