The big picture
Austin voters backed Project Connect in 2020 with the approval of an indefinite tax increase to fund the multibillion-dollar rail and bus initiative. It's now overseen by the Austin Transit Partnership, or ATP, the entity created to manage its development.
Project Connect's initial rail outline was scaled down since the 2020 vote due to factors like significantly increased costs. A new 9.8-mile above-ground system was adopted in 2023, replacing a more extensive early plan that would've featured stretches of downtown subway and an airport connection.
Those changes, and the project's tax-based funding structure, have drawn challenges from both locals and state officials. Legal proceedings to validate the ATP's financing plan remain unsettled as of early 2025, while a newer lawsuit over Project Connect's taxing was recently dismissed.
The ATP is moving forward with development on a nearly $200 million budget for the current fiscal year. The agency also recently approved its first major construction contract in December.
What happened
On Dec. 20, District Court Judge Eric Shepperd dismissed a lawsuit from a group of community opponents seeking to halt Austin's tax collections for Project Connect. The suit was filed back in August and alleged the city had broken promises to taxpayers with a "drastically reduced" transit plan and unclear construction timeline.
The plaintiffs include Austinites Cathy Cocco, Barbara Epstein and Susana Almanza; Dirty Martin's restaurant; county Commissioner Margaret Gomez; former City Council member Ora Houston and former state Sen. Gonzalo Barrientos.
Bill Aleshire, the attorney representing those plaintiffs who's also involved in other litigation over Project Connect, said they'll "very likely" appeal and that state lawmakers could also move to stall the transit program this year.
"I think the Texas Legislature will be interested in stopping Project Connect from becoming a model for bypassing bond elections (where the tax expires automatically when the bonds are paid off) and misusing tax-rate increases to the general fund that put a tax in place in perpetuity regardless of what changes the city makes to what voters approved," he said in an email.
In a statement, the city thanked Shepperd for his consideration of the case.
“The city is pleased with the court’s decision to dismiss this lawsuit in its entirety and looks forward to continuing to move forward with Project Connect," a city spokesperson said.
The December outcome in district court came as Attorney General Ken Paxton seeks to reverse a separate decision that'd allow a trial over the project's financing to proceed.
After a state appeals court rejected his push to halt those proceedings in October and an appeal soon after, Paxton is now asking the Texas Supreme Court to consider the case and allow for further review. An update to that process is expected in January.
Get involved
ATP is hosting a series of public meetings on the light rail program's next steps with opportunities to offer feedback in early 2025. Registration is free, and the events will be held:
- Jan. 16 from 4:30-7:30 p.m. in the Lively Middle School cafeteria at 201 E. Mary St., Austin
- Jan. 22 from 4:30-7:30 p.m. in the Baker Center cafetorium at 3908 Avenue B, Austin
- Jan. 25 from 2:30-5:30 p.m. in the Montopolis Recreation and Community Center gym at 1200 Montopolis Drive, Austin
- Jan. 28 from 1-4 p.m. in the Texas Union Quadrangle Room at The University of Texas at Austin at 2308 Whitis Ave., Room 3.304
The city hosted three open houses for public review of vision plans for the areas surrounding the North Lamar and South Congress transit centers in the fall. Based on community input, those station area plans will be finalized early this year.
