AASHTO Journal - New Funds for Texas Rail Grade Separation Projects

The Texas Transportation Commission recently approved $160.4 million in state funds for rail grade separation projects across Texas; projects that aim to improve safety, provide congestion relief, and boost economic development in communities with significant railroad activity.

[Above photo by TxDOT]

The funding, from the Off System Rail Grade Separation State Fund Program, will go toward five projects in the cities of Amarillo, Laredo, San Antonio and Houston. Approved by the 2025 Texas legislature, that tranche of state funding helps local governments eliminate at-grade crossings, reduce congestion, improve emergency response times and enhance freight network efficiency.

“By removing any interaction between trains and traffic on the road, we can help save lives, reduce delays and strengthen the economic competitiveness of our communities,” said Marc Williams, TxDOT’s executive director and the 2025-2026 vice president of the American Association of State Highway and Transportation Officials, in a statement.

“We deeply appreciate the Texas Legislature for establishing and funding the Off System Grade Separation Program,” he added. “Their leadership and investment make it possible for communities across the state to address long standing rail-roadway conflicts and build safer, more resilient transportation networks.”

TxDOT added that the commission also reserved $89.6 million from the program as matching funds to leverage potential federal grant funding; retaining full discretion to allocate reserved funds after federal grant decisions are made.

Across the country, state departments of transportation support a variety of rail projects – for both freight and passenger transport needs.

For example, the Connecticut Department of Transportation recently issued $20 million in grants through its Rail Freight Infrastructure Program; funding that supports projects aimed at enhancing rail safety, expanding rail freight capacity, and strengthening the long-term reliability of the state’s rail freight network. Those grant awards are also supplemented by nearly $4 million in private railroad investment, the agency noted.

Meanwhile, the New Mexico Department of Transportation recently finalized its 2026 State Rail Plan, outlining $283.1 million in prioritized rail investments over the next four years while establishing a long-term vision for rail modernization through 2045.

In a statement, the agency said that plan “positions rail as a key driver of economic growth, freight mobility, passenger connectivity, and public safety,” advancing “strategic projects” that will improve railroad crossing safety, reduce roadway congestion, enhance freight efficiency, and strengthen New Mexico’s competitiveness.

Finally, the North Carolina Department of Transportation’s Rail Division said that NC By Train, the state’s passenger rail service, will operate a special train from Raleigh Union Station to Rockingham Speedway to support the annual NASCAR race at that facility in April.

“After receiving positive feedback from last year’s event-day train service, we’re excited to bring this unique travel experience back,” said Jason Orthner, director of NCDOT’s Rail Division, in a statement. “We also want to thank our partners CSX, Amtrak and Track Enterprises for their support in providing this opportunity to get race fans to ‘The Rock.’ This … helps people bypass potential parking and traffic delays so they can enjoy a comfortable trip to major events like this one across the state.”