2027 Texas Legislative Priorities - Texas Rail Advocates

It provides financial assistance to local governmental entities for constructing grade-separated rail-highway or pedestrian-rail crossings off the state highway system Established under Senate Bill 1555 (89th Texas Legislature) and codified in Texas Transportation Code § 471.010. 2025 funding $250 million. Eliminate at-grade rail crossings, improve public safety, reduce traffic congestion, enhance emergency response times, and support economic development Leveraging federal funds in 2026, the Texas Department of Transportation secured a massive $756 million federal grant from the Federal Railroad Administration (FRA) under the Federal-State Partnership for Intercity Passenger Rail program for 12 critical rail grade separation projects across Texas

Texas Short Line Grant Program

Texas Rail Advocates supports a $25 million appropriation in the 2027 legislative budget

Also, modify the existing program to designate a local, county or regional government entity as the receiver of funds to supervise a project

Established by the Texas Legislature in 2025 to support Class II and Class III short line railroads. Administered by the Texas Department of Transportation (TxDOT), the program funds track or bridge replacements, capacity improvements, and restorations. The appropriation will boost local economies that are served by the over 50 short line railroads, the first-mile, last-mile branch operators that serve hundreds of important businesses and industries in the state Eligibility under current rules is restricted to short lines owned or operated by rural rail transportation districts, requiring at least a 10% non-state match. Broadening the scope will allow dozens of short line railroads the ability to compete for grants and leverage federal rail funds.

Create a Passenger Rail Advisory Committee within the Texas Department of Transportation

The Texas Transportation Commission and TxDOT has established advisory, policy-making and stakeholders' committees to provide fair, reliable and comprehensive advice and recommendations on a variety of transportation issues.

This includes current committees on ports, aviation, freight and even bicycle and pedestrian.

Texas will need more than just highways as our economy continues to grow.

A passenger rail advisory committee can turn now fragmented input on current and future passenger rail planning into a statewide implementable effort. An advisory committee can bring together cities, regions, rail operators, riders, economic development, rural & border, labor and workforce, disability needs, and safety to advise, prioritize and report to TxDOT and the Transportation Commission their findings.

Create a Passenger Rail Revolving Fund

Texas Rail Advocates supports a $90 million kickstart appropriation to make the state eligible for matching federal passenger rail funds

Texas continues to miss out on billions in federal passenger rail funding without a matching state grant program.

We suggest a template similar to Kansas Senate Bill 349 passed in 2025. Kansas’s statutory model provides a clear framework for program authority, a revolving fund, and transparent reporting.

Texas already has the institutional structure (TxDOT Rail Division, State Infrastructure Bank) but lacks dedicated statutory tools to manage and sustain passenger rail development.

A tailored Texas version could build on Kansas’s strength while aligning with the biennial budget cycle and TxDOT’s Unified Transportation Program.

After 27 Years Texas Should Finally Join the Southern Rail Commission

A Change of Name on an Existing Act is Required

On 6/19/2009 Governor Rick Perry signed HB646, authored by then Representative Bryan Hughes (now Senator) that allowed Texas to join in a federal rail compact with Louisiana, Mississippi and Alabama to develop passenger rail service.

Texas is named in the federal compact as a member state. The Act was never implemented by TxDOT with members named to the Southern Rail Commission.

Originally the Southern High-Speed Rail Commission, it requires the Texas Act to have a change of name to Southern Rail Commission.

The SRC established record breaking train service between New Orleans and Mobile, Alabama in 2025, plans for passenger rail service between New Orleans and Baton Rouge and is involved in the future leg of national passenger rail service between Atlanta and Dallas-Fort Worth.

Texas deserves a place at the table. East Texas and North Texas cities can benefit from additional national passenger rail choices.

Support Continued Funding for the Popular Heartland Flyer Between Fort Worth and Oklahoma City

North Texas Legislators Back This Appropriation

The Texas Department of Transportation (TxDOT) has requested $9.2 million in an exceptional item budget proposal to the Texas Legislature to fund the Amtrak Heartland Flyer for fiscal years 2028 and 2029.

The Heartland Flyer is a daily Amtrak passenger service connecting Fort Worth, Texas, and Oklahoma City, Oklahoma, which serves over 80,000 annual passengers and supports key regional events like the Red River rivalry and the FIFA World Cup.

$69 million is spent in Texas communities served by the Flyer. It is a long-standing partnership between the Texas and Oklahoma Department of Transportation and is supported by North Texas legislators of both parties.

The 206 mile corridor is a state-supported service and not eligible for federal funding under the PRIIA Act.