Lone Star Rail is basically two guys who somehow managed to get the Texas legislature to give them the authority to plan a train from Austin to San Antonio. They they persuaded several cities along the route to give them money to write the plan. However, the plan was to use Union Pacific tracks, and the railroad has notified Lone Star that it isn’t interested.
Running a train on 80 miles or so of existing tracks would be more expensive than a bus, but not expensive compared with building new tracks. However, Union Pacific’s line is too busy running freight trains to accommodate passenger trains too. So Lone Star’s plan was to spend $2 billion or so building an entirely new line for UP trains so it could have the existing line all to itself. However, UP says in its letter, this appears to be “unattainable,” so it is no longer interested in wasting time on it.
Lone Star’s plan was to call this a commuter train–which is a stretch as few commuters travel 80 miles to work–and get New Starts funds for the project. With the possible exception of the Downeaster, I don’t know of any intercity passenger train that has gotten federal transit funds under the claim that it was a commuter train. So Union Pacific is probably correct in its assessment.