In the parched Southwest, one in eight Americans rely on a single drought-stressed river that carries snowmelt from Rocky Mountain peaks down to desert communities. But instead of strengthening protections for that crucial water supply, the Biden administration has quietly laid the groundwork for a financial firm full of former government officials to use it as a route for oil trains — amid heightened concerns about derailments.

This spring, the project’s backers took the initial steps to apply for special Transportation Department bonds subsidized by tens of millions of dollars in annual tax breaks. Transportation Secretary Pete Buttigieg — a former McKinsey consultant who has previously touted such bonds — is under pressure from Democratic lawmakers, local communities, and environmental groups to deny the bonds, but has remained silent.

Meanwhile, the firm at the center of the project has never successfully developed a major infrastructure project, though it says it is “leveraging a proprietary set of relationships” its executives built during their time in government, according to corporate documents reviewed by us.