June 2, 2025 - TRA Austin - 

The Texas House and Senate have both given the nod to a grant program for the 50-some Texas short line railroads and the legislation to make it a reality has been sent to Governor Greg Abbott for his signature.

Senate Bill 2366, authored by Senators Brian Hughes and Angela Paxton, would make grants available to the first-mile, last-mile small railroads that serve hundreds or businesses and industries throughout the state.

Most of the short line railroads operate with under 40 miles of track. Short-line railroads play a critical role in connecting local industries to larger rail networks.

The bill, hopefully signed by Governor Abbott, would create, for the first time, a grant program for Class II and Class III short line railroads in Texas.  Grants could be used for track or bridge replacement, rail capacity improvements, or rail restoration. State funds could be used as matching funds to secure federal rail grants but at least 10 percent of matching funds must come from non-state sources. The Texas Transportation Commission would be required to approve any grant.