Austin’s Light-Rail Construction Contracts to be Awarded Soon

KEY POINTS

• Austin, TX, plans a 9.8-mile light-rail system that will feature 15 stations, bike paths, and a new bridge, enhancing city connectivity.

• Construction is expected to start in 2027, with an $8.23 billion budget covering infrastructure, property acquisitions, and operations.

• Expected to create 10,000 jobs during construction and improve access to 200,000+ jobs post-completion.

Austin Transit Partnership (ATP) published a Request for Qualifications (RFQ) in February 2025 for the final design and construction contract of the Texas city’s light-rail project.  

One year on, ATP now plans to award a multibillion-dollar design and construction contract early this year, with construction beginning in 2027 and the system open for service in 2033. ATP intends to use a progressive design-build delivery model that will enable the organization to closely collaborate with industry partners.

The $7.1 billion light-rail project was approved by Austin voters in 2020. In fact, the concept reportedly goes back as far as 40 years, but has faced delays and opposition along the way.

A Scaled-Back Vision with Big Ambitions

What was originally planned as a 20-mile system has been scaled back. The plan today includes 15 stations along a nearly 10-mile alignment, plus miles of new pedestrian and cycling paths and a new bridge across Lady Bird Lake.

The partners that ATP will select for this contract will help shape and build nearly every aspect of the system.

This will include the transit way, stations, bridges, traffic signals, utilities, drainage structures, and streetscape. The agreement is expected to extend through the duration of design and construction to the opening for service.

Once operational in 2033, the 9.8-mile Austin light rail system will connect key parts of the city alongside people-friendly elements like bike paths. Project rendering image: ATP

A Progressive Approach to Design and Construction

ATP calls the Austin light-rail system “one of the largest transit projects in the U.S.”

Its high level of dependability and ease of use will significantly reduce travel times to key destinations. The line will complement other modes of transit, such as buses, trains, and personal vehicles, giving people more choices when navigating between the core and the larger metro area.

Although the total timeline from RFQ issuance to system opening appears long, ATP says it is “consistent with how these projects are done around the country.”

Greg Canally, CEO of ATP, told local media that ATP is taking a different approach that, in fact, shortens the timeline.

“There’s been some studies done a few years ago that we have to change ways of delivering infrastructure, especially transit,” he said. “And one of the number one recommendations that came out of a report about four years ago was to create a special entity, where, lo and behold, that’s what Austin had already done. They are complicated projects, and we don’t want to shy away from that, right? Infrastructure is challenging. But we feel like we’re on track.”

Canally also pointed to the project’s “medium-high” rating in the Federal Transit Administration annual report to Congress.

“The rating is a strong reflection of all the hard work we have done in Austin—together with our federal and local partners.” 

In early January, the Donald Trump administration issued a Record of Decision, an environmental nod to the light-rail system, which formally signed off on the project’s lengthy environmental review. This will allow the ATP to begin preliminary work and use the process of eminent domain for the acquisition of property along the initial 9.8-mile rail corridor.

The years of lawsuits and political fights may have resulted in certain amendments to the original system design and features. For example, plans have been dropped for a parking garage at the northern end of the line after complaints from local residents. Also, fewer parking spaces are now planned for the system’s new park-and-ride facility.

However, ATP says design aspects do include shade trees, Texas plants, and new walk and bike paths that will be integrated throughout the line, creating more people-friendly spaces.

Economic and Community Impact

The estimated $8.23-billion-plus price tag of the system goes beyond rails and cars. A new bridge over Lady Bird Lake is required, as well as portions of elevated rail, a 62-acre operations and maintenance facility near the airport, utility relocations, bike lanes, sidewalks, and an estimated $1 billion in property acquisitions, plus interest on loans.

It’s not known yet whether the federal government will commit to any financial support.

ATP executive vice-president Jennifer Pyne told local media that ATP officials don’t expect any deal on a federal grant to be locked down until late 2027 or early 2028, well after construction is scheduled to begin.

In addition to the transit benefits, Austin’s light rail is expected to create 10,000 jobs directly and create access to 200,000-plus jobs when operational.

Stay Connected

Stay connected with ConstructConnect News, your source for construction economy insights, market trends, and project news.

About ConstructConnect

At ConstructConnect, our software solutions provide the information that construction professionals need to start every project on a solid foundation. For more than 100 years, our keen insights and market intelligence have empowered commercial firms, building product manufacturers, trade contractors, and architects to make data-driven decisions, streamline preconstruction workflows, and maximize their productivity. Our newest offerings—including our comprehensive, AI-assisted software—help our clients find, bid on, and win more projects.

ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.  

For more information, visit constructconnect.com