February 26, 2026 - TRA Newswire, Austin -

The Texas Transportation Commission today awarded the first five state grants for rail crossing separation projects from a new state rail fund, totaling $ 160.4 million. 

Texas Department of Transportation Rail Division Director Don Franks made the presentation before the commission in Austin, with the balance of funds from the new $250 million state grant program held in reserve to be announced for more projects in the near future.

Rail crossing project grants for Amarillo, Houston, Laredo and San Antonio will provide relief for motorists from blocked rail crossings in those areas and well as ensure safer highways where trains and vehicles will not cross each other at-grade in the future. The fund program is designed to help cities and county rail crossings that are not part of the TxDOT highway grid, but are heavily congested or have been the scene of accidents in the past.

The TxDOT Rail Division will hold some $90 million in reserve while the agency now applies for matching federal funds so that state dollars can be stretched further on additional grade separation projects. 

"This is a good day for rail and road safety and something that Texas Rail Advocates has been working toward ever since the rail division was established in 2009", said TRA President Peter LeCody, speaking before the Commissioners. "Thanks to your foresight, an Exceptional Item request for $175 million last session turned into a first-time ever grant program of $250 million passed by the legislature and signed into law by Governor Abbott."

The Senate Bill 1555 grant program will allow the Texas Department of Transportation (TxDOT) to address safety and infrastructure improvements where public roads cross railroad tracks that are not a state or federally designated highway. It would also benefit rail-pedestrian crossings, especially in urban areas. Local projects would have to contribute a minimum 10 % of the total crossing cost to be eligible for state funding. 


Texas Off-System Rail Grade Separation State Fund Program

February 2026 Awards TxDOT District

Project Name

Award

Amarillo

BNSF Railroad Crossing of NE 24th Avenue, Potter County

$20,250,000

Amarillo

BNSF Railroad Crossing of S. Georgia Street just south of W. Sundown Lane, Randall County

$36,655,000

Houston

The Griggs-Long-Mykawa Grade Separation Project, Harris County

$40,000,000

Laredo

CPKC Rail Grade Separation and Safety Enhancement Project at Santa Maria Blvd, Webb County

$58,509,607

San Antonio

San Antonio UP Railroad Crossing at Zarzamora Street/Frio City Road, Bexar County

$5,000,000

 

See additional coverage: 

https://texasrailadvocates.org/post/texas-cities-start-planning-to-tap-into-txdots-new-rail-grade-separation-grant-fund


https://texasrailadvocates.org/post/texas-now-has-a-grant-program-to-fund-railroad-grade-separation-projects