Crystal ball for Texas rail transportation issues in the 2027 session? We look backward and forward
November 8, 2026
November 8, 2026- TRA Newswire –
Transportation followers are wondering what the 2027 Texas Legislative Session will look like following a blue sea change in leadership from the Governor's office to the legislature, commissions and all points in between.
Many policy statements and appointments will be made in the coming weeks and Texas Rail Advocates will be following developments and reporting with updates.
We offer this observation on potential scenarios on passenger and freight rail issues:
• AUSTIN-SAN ANTONIO CORRIDOR: Outgoing Governor Abbott got the ball rolling when he instructed TxDOT to complete a study of the Austin-San Antonio corridor for potential passenger rail service. That study earlier this year, and one completed at the request of the Travis County Commissioners Court, raised interest in doing “something” to address the overloaded I-35 corridor between these two cities, destined to merge into a future mega-region.
In 2019, Governor-elect Gina Hinojosa was one of twenty state representatives that signed on to a bi-partisan letter asking to advance regional passenger rail between Austin and San Antonio. Will she be interested in moving this forward?
• BILLS FOR PASSENGER RAIL: Passenger and freight rail bills were filed last session. Will Representative John Bucy (D-Austin) reintroduce his bill directing TxDOT to create a Comprehensive Development Agreement for intercity passenger rail in the I-35 corridor? It passed the House Transportation Committee, chaired by Dean Tom Craddick (R-Midland), but did not reach the House floor in time.
Senator Molly Cook (D-Houston) proposed high-speed rail between Houston and Austin last session, but her bill never received a Senate Transportation Committee hearing.
Will House and Senate sponsors support a Passenger Rail Revolving Fund like the one Kansas created last year? Texas Rail Advocates has an idea for a passenger rail fund and we are actively looking for support.
Several rural Texas lawmakers introduce bills to block high-speed rail each session. With no current news about high-speed rail between Dallas and Houston will they do so again in 2027?
We will also follow the budget line item for Texas' share of support for the Heartland Flyer. The Oklahoma/Texas DOT partnered train is asking for $9 million for the next two years to keep the popular train running. There's a lot of legislative support from the North Texas delegation. 80,000+ passengers as well.
Will the Texas Mobility Fund be re-activated for rail projects? It's a revolving constitutional fund created in 2001 but expires in January 2027. It is administered by the Texas Department of Transportation (TxDOT) and the Texas Transportation Commission to finance highways but also can be used for public transportation or regional mobility projects.
• BILLS FOR FREIGHT RAIL: A $250 million road/rail at-grade elimination grant program signed by Governor Abbott last go round to eliminate dangerous rail crossings became a smashing success when over a billion dollars in federal funds were added to the program this year. Smelling the lure of matching federal grants, will the lege allocate another $250 million in 2027 and hope for a repeat?
A Short Line Railroad Grant Program established in 2025, but without any state funding attached, could see a few words changed in the law to allow participation from local and regional governmental entities with the short line mom-n-pop operators. We hope to see a $25 million kickstart to help infrastructure needs of these short lines to attract shippers, many of which operate in smaller cities and towns.
• TxDOT and the TEXAS TRANSPORTATION COMMISSION: It’s no secret that the transportation agency gets their direction from the governor’s office. This has made a lot of legislators under the dome miffed about not having any input on transportation projects in their districts. Will the Democrat controlled House want any changes in how funding is apportioned?
Governor-elect Hinojosa will have the opportunity to change the composition of the Transportation Commission next year when two commissioners complete their term. Will new members be more rail friendly in a 98% highway focused budget?
• SENATE STOPPER: No matter what the soon to be Democrat-controlled House passes in 2027, bills still need to go through the Texas Senate. The upper chamber will be anchored by Lt. Governor-elect Vikki Goodwin, but still with a Republican narrow majority its possible to slow down or kill proposed rail legislation if there are any roadblocks.
Pre-filing for bills in the 2027 session begin Monday, November 9. Stay tuned and watch our Under the Dome page for rail legislation to be filed.
Transportation followers are wondering what the 2027 Texas Legislative Session will look like following a blue sea change in leadership from the Governor's office to the legislature, commissions and all points in between.
Many policy statements and appointments will be made in the coming weeks and Texas Rail Advocates will be following developments and reporting with updates.
We offer this observation on potential scenarios on passenger and freight rail issues:
• AUSTIN-SAN ANTONIO CORRIDOR: Outgoing Governor Abbott got the ball rolling when he instructed TxDOT to complete a study of the Austin-San Antonio corridor for potential passenger rail service. That study earlier this year, and one completed at the request of the Travis County Commissioners Court, raised interest in doing “something” to address the overloaded I-35 corridor between these two cities, destined to merge into a future mega-region.
In 2019, Governor-elect Gina Hinojosa was one of twenty state representatives that signed on to a bi-partisan letter asking to advance regional passenger rail between Austin and San Antonio. Will she be interested in moving this forward?
• BILLS FOR PASSENGER RAIL: Passenger and freight rail bills were filed last session. Will Representative John Bucy (D-Austin) reintroduce his bill directing TxDOT to create a Comprehensive Development Agreement for intercity passenger rail in the I-35 corridor? It passed the House Transportation Committee, chaired by Dean Tom Craddick (R-Midland), but did not reach the House floor in time.
Senator Molly Cook (D-Houston) proposed high-speed rail between Houston and Austin last session, but her bill never received a Senate Transportation Committee hearing.
Will House and Senate sponsors support a Passenger Rail Revolving Fund like the one Kansas created last year? Texas Rail Advocates has an idea for a passenger rail fund and we are actively looking for support.
Several rural Texas lawmakers introduce bills to block high-speed rail each session. With no current news about high-speed rail between Dallas and Houston will they do so again in 2027?
We will also follow the budget line item for Texas' share of support for the Heartland Flyer. The Oklahoma/Texas DOT partnered train is asking for $9 million for the next two years to keep the popular train running. There's a lot of legislative support from the North Texas delegation. 80,000+ passengers as well.
Will the Texas Mobility Fund be re-activated for rail projects? It's a revolving constitutional fund created in 2001 but expires in January 2027. It is administered by the Texas Department of Transportation (TxDOT) and the Texas Transportation Commission to finance highways but also can be used for public transportation or regional mobility projects.
• BILLS FOR FREIGHT RAIL: A $250 million road/rail at-grade elimination grant program signed by Governor Abbott last go round to eliminate dangerous rail crossings became a smashing success when over a billion dollars in federal funds were added to the program this year. Smelling the lure of matching federal grants, will the lege allocate another $250 million in 2027 and hope for a repeat?
A Short Line Railroad Grant Program established in 2025, but without any state funding attached, could see a few words changed in the law to allow participation from local and regional governmental entities with the short line mom-n-pop operators. We hope to see a $25 million kickstart to help infrastructure needs of these short lines to attract shippers, many of which operate in smaller cities and towns.
• TxDOT and the TEXAS TRANSPORTATION COMMISSION: It’s no secret that the transportation agency gets their direction from the governor’s office. This has made a lot of legislators under the dome miffed about not having any input on transportation projects in their districts. Will the Democrat controlled House want any changes in how funding is apportioned?
Governor-elect Hinojosa will have the opportunity to change the composition of the Transportation Commission next year when two commissioners complete their term. Will new members be more rail friendly in a 98% highway focused budget?
• SENATE STOPPER: No matter what the soon to be Democrat-controlled House passes in 2027, bills still need to go through the Texas Senate. The upper chamber will be anchored by Lt. Governor-elect Vikki Goodwin, but still with a Republican narrow majority its possible to slow down or kill proposed rail legislation if there are any roadblocks.
Pre-filing for bills in the 2027 session begin Monday, November 9. Stay tuned and watch our Under the Dome page for rail legislation to be filed.