March 12, 2022 - TRA Austin - 

Texas State Representative Stan Gerdes (Dist. 17-Smithville) has filed a rider to the Texas House Appropriations bill that, if accepted and approved, would direct $200 million in General Revenue Funds to the Texas Rail Relocation and Improvement Fund (RRIF). This would be the first time the fund would receive a boost from the legislature since voters approved the RRIF with a constitutional amendment in 2005. 

"With the state running a surplus and with some $36 billion in federal funding for rail projects to be distributed in a five year period, this could be the perfect storm for finally getting some long-sought-after freight and passenger rail projects started in Texas," according to Texas Rail Advocates President Peter LeCody. "Texas could finally file for competitive federal grants with as little as a 20% state match, just like we do for highways. If we don't get our Fair Share For Rail of the federal funds, other states will. We thank Representative Gerdes, his staff and Giddings Economic Development Corporation President/CEO David Stedman for pursuing this rider."

The $200 million rider would add those funds to the Texas Department of Transportation's budget, directing the money to be transferred to the Texas Rail Relocation and Improvement Fund for use by TxDOT for rail relocation and improvement projects and as matching funds for Federal Funds for eligible projects in accordance with the Texas Constitution and the Transportation Code, according to the rider language. 

In the rider it states that  "It is the intent of the Legislature that monies in the Texas Rail Relocation and Improvement Fund No. 0306 be used, in part, to provide matching funds for any Federal Funds sources and programs that may be available to the State for financing rail relocation and improvement projects that are eligible for funding from the Texas Rail Relocation and Improvement Fund."

Appropriated Fund 0306, as stated by the State Comptroller, describes the RRIF as being "Authorized to receive proceeds from bonds and notes as well as dedications and appropriations made by the legislature. For financing the relocation and improvement of privately and publicly owned passenger and freight rail facilities in order to relieve highway congestion, enhance public safety, improve air quality, and expand economic opportunity. May be used for construction of railroad underpasses and overpasses if related to the relocation of a rail facility."

A growing number of cities, counties, economic development agencies, ports and rail districts have issued resolutions and letters of support to the Texas Transportation Commission, TxDOT and legislators in support of rail funding during the past 12 months. 

Here is the rider in its' entirety:

Article VII, Department of Transportation

Proposed Funding and Rider

Appropriation for Texas Rail Relocation and Improvement Fund

Prepared by LBB Staff, 03/07/2023

Overview

Provide an appropriation of $200.0 million in General Revenue Funds to the Department of

Transportation (TxDOT) and add a rider to the TxDOT bill pattern directing these funds to be

transferred to the Texas Rail Relocation and Improvement Fund for use by TxDOT for rail

relocation and improvement projects and as matching funds for Federal Funds for eligible

projects in accordance with the Texas Constitution and the Transportation Code.

Required Action

(1) On page VII-18 of the Department of Transportation bill pattern, increase funding in Strategy

D.1.3, Rail Construction, in fiscal year 2024 by $200,000,000 in General Revenue.

(2) On page VII-34 of the Department of Transportation bill pattern, add the following rider: 

Appropriation for Texas Rail Relocation and Improvement Fund. Out of

amounts appropriated above in Strategy D.1.3, Rail Construction, with the assistance

of the Comptroller of Public Accounts, $200,000,000 in General Revenue in fiscal

year 2024 shall be transferred to the Texas Rail Relocation and Improvement Fund

No. 0306. In accordance with Texas Constitution, Article III, Section 49-o, monies in

the Texas Rail Relocation and Improvement Fund No. 0306 are appropriated for the

fiscal biennium beginning September 1, 2023, for use by the Department of

Transportation in a manner consistent with the provisions of Transportation Code,

Chapter 201, Subchapter O. It is the intent of the Legislature that monies in the Texas

Rail Relocation and Improvement Fund No. 0306 be used, in part, to provide

matching funds for any Federal Funds sources and programs that may be available to

the State for financing rail relocation and improvement projects that are eligible for

funding from the Texas Rail Relocation and Improvement Fund.