The Boring Company, the tunneling firm headed by Elon Musk, is in discussions with federal transportation officials over the Frederick Douglass Tunnel project, The New York Times reported.

The Federal Railroad Administration has been in contact with representatives from the Boring Company after the tunnel project, which would connect Baltimore to Washington and Virginia, saw its projected costs rise from an initial $6 billion to $8.5 billion.

A spokesperson for the Department of Transportation described the talks as informal conversations, telling Newsweek that the report of the Boring Company’s discussions with the government was trying to “make something out of nothing.”

Newsweek contacted the Federal Railroad Administration for comment via email.

The Context

The Frederick Douglass Tunnel is designed to replace the Baltimore and Potomac Tunnel, which is more than 150 years old and restricts trains to 30 mph because of its tight curves and deteriorating structure. The new twin-tube, single-track tunnel would support electrified passenger trains and allow them to travel at significantly higher speeds. This would be the first public-use tunnel project for the Boring Company outside its demonstration project in Las Vegas.

What To Know

The Boring Company is headquartered in Bastrop, Texas, and has previously marketed itself as an innovator in low-cost, high-speed tunneling.

Amtrak announced in 2024 that construction on the Frederick Douglass Tunnel would begin in 2026, with completion around 2035. Construction firms Kiewit and J.F. Shea had already been named for part of the construction contract.

However, Federal Railroad Administration officials have since discussed the project with other firms, including the Boring Company, The New York Times reported on Monday. The outlet said a spokesperson for the Department of Transportation confirmed the government’s talks with the Boring Company but declined to name the other firms consulted.

According to the report, the company told officials it could offer faster and cheaper construction alternatives, though details of its proposals have not been disclosed publicly.

The Department of Transportation told Newsweek that Amtrak was carrying out value engineering work to bring the project back on budget and that representatives held informal conversations with multiple companies to determine whether the administration should take additional bids for a separate value engineering contract.

“The New York Times‘ latest hit piece is more fake news to try and make something out of nothing,” a spokesperson for the department said.

The spokesperson continued: “Here are the facts—many of which they ‘conveniently’ failed to mention: Infrastructure costs skyrocketed under Joe Biden and Pete Buttigieg‘s failed leadership. America is building again under this Administration. As part of that mission, the Department of Transportation is working with grantees, such as Amtrak, to keep projects on budget and on schedule.”

What People Are Saying

A spokesperson for the Department of Transportation told Newsweek: “In fall of 2024, the estimated cost of the Baltimore tunnel project increased by $2.5 billion, and Amtrak has not yet identified enough efficiencies to fully offset that increase.

“The Department has been holding regular discussions with Amtrak, and the Department has had conversations with many stakeholders in the infrastructure-engineering space to understand opportunities to get this project back on track.

“No decision has been made on bids, and Amtrak in coordination with DOT will follow standard procedures for bidding out contracting and subcontracting.”

What Happens Next

It remains to be seen whether the Boring Company will play any further role in the tunnel project beyond informal discussions.