January 16, 2026 - CommunityImpact.com - 

Austin's light rail project cleared a key federal review in January, marking a "major milestone" in the multibillion-dollar transit system's ongoing development.

The nearly 10-mile Austin Light Rail is one piece of the Project Connect transit program rolling out following voterapproval in 2020. The rail network is overseen by the Austin Transit Partnership, or ATP—the entity created to implement the system—as well as Austin and Capital Metro.

Roughly half of the light rail's $7.1 billion price tag will be covered through federal grants that require an extensive Federal Transit

Administration review and approval, processes that remain underway. Billions of dollars more will be provided through a city tax increase authorized in the 2020 election; revenues directly support Project Connect, as well as bonds and federal infrastructure loans.

Read more: https://communityimpact.com/austin/south-central-austin/transportation/2026/01/16/austin-light-rail-completes-fta-environmental-review-moving-closer-to-federal-funding/

Photo credit: Austin Transit Partnership