The Austin Light Rail Phase 1 project is a planned 9.8-mile, 15-station electric light rail system in Austin, Texas, intended to connect areas including Guadalupe Street, downtown, South Congress and East Riverside. The $7.1 billion project is being developed by the Austin Transit Partnership (ATP), with construction planned to begin in 2027 and passenger service targeted for 2033.
ATP released the solicitation for the project’s final design and construction contract in 2025. The contract covers the transitway, tracks, stations, bridges, utilities, drainage, traffic signals and streetscape works, including a new bridge across Lady Bird Lake and pedestrian and cycling paths. ATP subsequently awarded the contract in February 2026 to Austin Rail Constructors (ARC), a joint venture between Stacy Witbeck and Sundt Construction.
The procurement followed a progressive design-build process, with ATP issuing a Request for Qualifications in June 2025 before moving to the Request for Proposals stage in August. The selected contractor will advance final design and construction of the project’s civil, rail, station and system components. ATP completed the project’s federal environmental review in January 2026, allowing the programme to progress into further design and preconstruction activities.
AECOM was selected by ATP in December 2024 as the delivery partner for Austin Light Rail Phase 1. The company provides project management, construction management and technical support as ATP coordinates the delivery of the system.
The latest project updates show that ATP is continuing final design and preconstruction work ahead of the planned 2027 construction start. In April 2026, ATP also selected Kiewit Austin Partnership to design and build the Operations and Maintenance Facility, while Stadler was selected in July 2026 to supply the light rail vehicles. This comes despite the funding hurdles that the project is facing.
Scope of Implementation on the Austin Light Rail
The Dallas-based firm will handle the following service for the Austin light rail system project:
- Project management
- Environmental services
- Design management
- Rail activation
- Operational readiness
- Lead technical team of subconsultants
The cost of the project is still capped at $7.1 billion as per ATP official estimates. This will however be catered for in half by federal funding if the Federal Transit Administration’s Capital Investment Grant Program approves of the funding to the project.
Once completed, the new Austin light rail will connect major destinations across the city, including the University of Texas at Austin, and the Austin Airport in future expansions.
The partnership with AECOM will also see to the collaboration with Disadvantaged Business Enterprise (DBE) firms for the project. The DEB firms will come in as subconsultants for the project. This collaborations will strategically provide economic opportunities to the people of Austin and make them part of the project’s development.
Lara Poloni, the president of AECOM, expressed optimism of the Austin light rail project, terming the project a stimulant to “economic growth” in the region. Also made clear was that the project will be integral in, “protecting the existing environment and promoting a sustainable future for generations to come.”
Project Connect factsheet
Location: Texas, U.S
Client: City of Austin, CapMetro
Design and construction oversight body: Austin Transit Partnership (ATP)
Project scope: CapMetro Rail, CapMetro Rapid, CapMetro Express, new light rails – the Austin light rail lies here.
Austin light rail cost: $7.1 billion
The light rail delivery partner: AECOM
The light rail construction commencement date: 2027
Other Projects
The Austin Light Rail is just one of the many such projects advancing in the US with the Atlanta Beltline Light rail project making advancements as well. The Atlanta Beltline hosted a public meeting on 3 September to present final recommendations for a $3.5 billion light rail system around the 22-mile loop. The Beltline Transit Study, therefore, brings together years of planning efforts into a single, comprehensive light rail vision. The Atlanta Beltline light rail project is a Federal Transit Administration-funded project that concentrates on three service corridors that link the northwest, southwest and southeast quadrants.
Events in Austin light rail projected timeline
AECOM is expected to begin work in January. ATP will also initiate final design and construction contracts valued at more than $4 billion in January. The contracts will then be awarded in 2026, with construction breaking ground in 2027. As part of Project Connect, the $7.1 billion Austin light rail project expects completion by 2033.
ATP has however been facing some challenges that it hopes to resolve before major construction work start. These challenges include the securing of federal funds for the project and resolving a lawsuit that aims to stymie the construction plans. ATP also aims to secure the needed federal funds expected to cover around 50% of the project’s expenses by 2026.
Significance of the Project Connect light rail system
Project Connect light rail project is a community effort that aims to expand transit options throughout the Austin area. This is expected to be done with new light rail services – among other implementations across the city. The project will be significant for the Austin community as it will create employment opportunities. This is part of the reason why ATP believes that a truly comprehensive transit system can connect people to opportunities.
The project will also facilitate better transit access to healthcare, education, essential services, and other necessities throughout the city. Alongside this, the project will also lead to the development of more affordable housing projects in the area. The project is not only designed to help Austin, but also the United States – helping them move forward towards a future of limitless interconnectedness.
Cost of the project
ATP Executive Director, Greg Canally, said the federal grant is competitive, and that Austin light rail project is contingent on receiving it. He also noted that they are confident that the process will bring billions of dollars of federal money to Texas to facilitate the project. The allocation of federal funds through the Capital Investment Grants New Starts Program is integral to the project’s success.
Project Connect light rail $7.1 billion budget announced in June 2023 is an increase from a previous estimate of $5.8 billion in 2022. The $5.8 billion is also a decrease from a previous high-mark of $10.3 billion.
ATP also aims to use the money to passively invest in economic activities within Austin. The executive director also noted that the current costs are in plans to cushion for future inflation.
The $7.1 billion will be distributed in several areas of the project. More than $4 billion is expected to finance and facilitate the design, construction and engineering aspects of the project. $1.86 billion will be used for professional services such as consultancy services. $937 million will be used in real estate acquisition, while $1.11 billion is to be channeled to trains and ATP’s maintenance facility in Montopolis neighborhood.
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