Texas scores $106 million in eight Federal Railroad Administration grants for a basket of projects
October 20, 2026
October 20, 2026 - TRA Newswire -
U.S. Department of Transportation Secretary Sean P. Duffy announced the Federal Railroad Administration (FRA) is investing $2.3 billion into freight and passenger rail projects in 45 states and the District of Columbia.
Of that total, Texas will receive $106 million in eight grants that will improve shortline infrastructure and port connections, boost rail access to local shippers, rehabilitate and upgrade miles of rail track as well as locomotives, and remove a rail yard from a busy North Texas downtown city.
The largest Texas grant, $35 million, will go to improve the rail line between the Rio Grande River city of Presidio to Alpine, Texas, a distance of 80-plus miles. With the impending opening of a new Mexico/U.S. rail bridge at Presidio, this will open up a new international freight rail link to benefit both countries through the South Orient Railroad. It is already starting to spur economic development interest in underdeveloped counties in West Texas.
Over 2,000 miles of track across America will see improvements thanks to funding from the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grant Program, which received a record number of eligible applications this cycle.
“Under President Trump, USDOT is investing in rail projects that will unleash local economies and deliver real safety upgrades. From improving shortline infrastructure and port connections so critical products can get where they need to go faster to enhancing fencing along trespassing hotspots, this package will tangible improve lives for millions of Americans,” said U.S. Transportation Secretary Sean P. Duffy. “These improvements are all part of our efforts to rekindle a Golden Age of Rail in America.”
“The funds announced today will provide shortline railroads across the country with the resources they need to make long overdue improvements to their day to day operations,” said FRA Administrator David Fink. “These thoughtful, targeted investments will reduce congestion and improve operations instead of wasting tax dollars on politically driven boondoggles.”
Southwest Texas - The largest Texas grant goes to the Texas Pacifico Corridor Modernization Project (Up to $35,238,347) to Texas Pacifico Transportation, LTD. that will help develop a new Mexico-U.S. rail corridor in the Big Bend region of Southwest Texas.
The project was selected for Project Development, Final Design, and Construction and includes the rehabilitation and improvement of rail infrastructure in Alpine and Presidio, Texas. The project will install rail, replace ties, restore ballast, rehabilitate twelve at-grade crossings, stabilize yard operations, and construct two new sidings. The project aligns with the selection criteria by enhancing safety, improving system and service performance, and improving reliability as the project will upgrade multiple corridor segments to FRA Class 2 or Class 3 track standards, supporting the reopening and long-term use of the Presidio-Ojinaga international rail gateway. Texas Pacifico will contribute a 40 percent non-Federal cost share. This project qualifies for the statutory set-aside for projects in Rural Areas.
Texas City Texas - Gateway 200: Access and Rail Project (Up to $30,239,200)
Texas City Terminal Railway Company. The project was selected for Construction and includes the improvement of operations at the Port of Texas City in Texas City, Texas. The project will realign the Port’s vehicle entrance gate and rehabilitate and expand the yard. The project aligns with the selection criteria by enhancing safety, improving system and service performance, and improving reliability as the project will address a safety conflict between trains and vehicles entering a petroleum facility and enable the Port to meet existing and projected demand for exporting multiple types of petrochemicals. The Texas City Terminal Railway Company will contribute a 20 percent non Federal cost share.
Rio Grande Valley Texas - Improving Railroad Operations & Networks for Higher Operational Reliability, Safety, and Efficiency Project (Up to $11,690,000) Rio Valley Switching Company
The project was selected for Final Design and Construction and includes track rehabilitation and capacity improvement across five Ironhorse-owned short line railroads in Arizona, New Mexico, and Texas. The project will replace rail and ties, install ballast, resurface track, rehabilitate turnouts, resurface four at-grade crossings, and add two new sidings. The project aligns with the selection criteria by enhancing safety, improving system and service performance, and improving reliability as the project will restore the track to a state of good repair, enable 286,000-pound railcar capacity, and allow the railroads to meet growing demand. The Rio Valley Switching Company will contribute a 30 percent non-Federal cost share, which may include funding from Ironhorse Resources, Inc.
Palestine Texas – East Texas Revival Project - Phase 3 (Up to $8,538,972) Texas & Eastern Railroad, LLC
The project was selected for Final Design and Construction and includes the construction of four new rail tracks adjacent to the Texas & Eastern Railroad Palestine Depot, in Palestine, Texas. The project will install two sidings, one dedicated transload siding, and one new storage spur parallel to the east leg of the existing wye to eliminate a critical two-hour locomotive runaround operation. The project aligns with the selection criteria by improving system and service performance as the project will unlock new dedicated transload capacity and free the existing wye for expanded freight operations by providing alternative car storage. The Texas & Eastern Railroad will contribute a 20 percent non-Federal cost share, which may include funding from the Texas State Rail Authority. This project qualifies for the statutory set-aside for projects in Rural Areas.
Hondo Texas – Safety Performance and Upgrades for Rail (SPUR) (Up to $8,292,440) Hondo Railway, LLC
The project was selected for Project Development, Final Design, and Construction and includes the improvement and modernization of rail infrastructure in Hondo, Texas. The project will construct new industrial lead and connection tracks, extend a siding, install new turnouts and power-operated switches, and reconfigure track infrastructure. The project aligns with the selection criteria by enhancing safety, improving system and service performance, and improving reliability as the project will create bi-directional rail access and increase siding capacity, reducing blocked crossings. Hondo Railway will contribute a 30 percent non-Federal cost share, which may include funding from the Hondo Economic Development Corporation. This project qualifies for the statutory set-aside for projects in Rural Areas.
Starr and Hidalgo Counties Texas - Border Pacific Railroad Company Infrastructure Project to Support Prosperity in Starr and Hidalgo Counties, TX (Up to $6,381,000)
Border Pacific Railroad Company The project was selected for Project Development, Final Design, and Construction and includes the rehabilitation of approximately sixes of track and approximately 27 curves between Rio Grande City and Mission, Texas. The project will replace deteriorated rail and track components and add ballast. The project aligns with the selection criteria by enhancing safety, improving system and service performance, and improving reliability as the project will upgrade rehabilitated segments to FRA Class 1 track standards and enable 286,000-pound railcar capacity, resulting in increased freight capacity. The Border Pacific Railroad Company will contribute a 40 percent non-Federal cost share. This project qualifies for the statutory set-aside for projects in Rural Areas.
Gonzales Texas – Texas Shortline Locomotive Emissions Reduction Project (Up to $4,711,571) Texas Gonzales Northern Rail
The proposed project was selected for Construction and includes the modernization of locomotives across the TNW Corporation short line system in Texas. The project will retire four locomotives and replace them with five remanufactured locomotives and rebuild two locomotives into slug-mothers. The project aligns with the selection criteria by improving system and service performance as the project will reduce emissions, maintenance costs, and fuel consumption. The Texas Gonzales Northern Rail will contribute a 50 percent non-Federal cost share, which may include funding from the TNW Corporation. This project qualifies for the statutory set-aside for projects in Rural Areas.
McKinney Texas - Downtown Freight Rail Siding Relocation Planning Project (Up to $875,000) City of McKinney
The proposed project was selected for Project Planning and will support activities to evaluate the relocation and modernization of existing freight siding and switching operations for the Dallas, Garland & Northeastern Railroad in McKinney, Texas. The project aligns with the selection criteria by improving system and service performance and improving reliability as the project will assess alternatives for developing a new rail-served industrial facility within the Dallas, Garland & Northeastern Railroad corridor, including expanding industrial siding concepts and relocating the switching from the historic district to the industrial location. The City of McKinney will contribute a 30 percent non-Federal cost share.
CRISI applications were evaluated according to several criteria, including project readiness, technical merit, and project benefits. Eligible applications for the Crossing Safety Program were also evaluated on the basis of technical merit including Project Readiness, Project Benefits, Project Implementation and Management and similar criteria.
Last April, FRA announced a Notice of Funding Opportunity (NOFO) for the CRISI program intended to provide funding for projects that improve the safety, efficiency, and reliability of intercity passenger and freight rail. Under Secretary Duffy, the grant programs revamped criteria prioritize safety, the American family, and workforce development, job quality and wealth creation. Specifically, the Department is supporting projects that: reduce congestion, jumpstart ridership growth on passenger railroads, improve regional railroad infrastructure or develop safety programs to prevent trespassing and reduce injuries and fatalities.
In August, Secretary Duffy announced a $5.3 billion investment into rail projects across the U.S. that will enhance safety, upgrade infrastructure, and purchase new trainsets for Amtrak.
Photo: U.S. Department of Transportation Secretary Sean Duffy and (right) FRA Administrator David Fink
U.S. Department of Transportation Secretary Sean P. Duffy announced the Federal Railroad Administration (FRA) is investing $2.3 billion into freight and passenger rail projects in 45 states and the District of Columbia.
Of that total, Texas will receive $106 million in eight grants that will improve shortline infrastructure and port connections, boost rail access to local shippers, rehabilitate and upgrade miles of rail track as well as locomotives, and remove a rail yard from a busy North Texas downtown city.
The largest Texas grant, $35 million, will go to improve the rail line between the Rio Grande River city of Presidio to Alpine, Texas, a distance of 80-plus miles. With the impending opening of a new Mexico/U.S. rail bridge at Presidio, this will open up a new international freight rail link to benefit both countries through the South Orient Railroad. It is already starting to spur economic development interest in underdeveloped counties in West Texas.
Over 2,000 miles of track across America will see improvements thanks to funding from the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grant Program, which received a record number of eligible applications this cycle.
“Under President Trump, USDOT is investing in rail projects that will unleash local economies and deliver real safety upgrades. From improving shortline infrastructure and port connections so critical products can get where they need to go faster to enhancing fencing along trespassing hotspots, this package will tangible improve lives for millions of Americans,” said U.S. Transportation Secretary Sean P. Duffy. “These improvements are all part of our efforts to rekindle a Golden Age of Rail in America.”
“The funds announced today will provide shortline railroads across the country with the resources they need to make long overdue improvements to their day to day operations,” said FRA Administrator David Fink. “These thoughtful, targeted investments will reduce congestion and improve operations instead of wasting tax dollars on politically driven boondoggles.”
Southwest Texas - The largest Texas grant goes to the Texas Pacifico Corridor Modernization Project (Up to $35,238,347) to Texas Pacifico Transportation, LTD. that will help develop a new Mexico-U.S. rail corridor in the Big Bend region of Southwest Texas.
The project was selected for Project Development, Final Design, and Construction and includes the rehabilitation and improvement of rail infrastructure in Alpine and Presidio, Texas. The project will install rail, replace ties, restore ballast, rehabilitate twelve at-grade crossings, stabilize yard operations, and construct two new sidings. The project aligns with the selection criteria by enhancing safety, improving system and service performance, and improving reliability as the project will upgrade multiple corridor segments to FRA Class 2 or Class 3 track standards, supporting the reopening and long-term use of the Presidio-Ojinaga international rail gateway. Texas Pacifico will contribute a 40 percent non-Federal cost share. This project qualifies for the statutory set-aside for projects in Rural Areas.
Texas City Texas - Gateway 200: Access and Rail Project (Up to $30,239,200)
Texas City Terminal Railway Company. The project was selected for Construction and includes the improvement of operations at the Port of Texas City in Texas City, Texas. The project will realign the Port’s vehicle entrance gate and rehabilitate and expand the yard. The project aligns with the selection criteria by enhancing safety, improving system and service performance, and improving reliability as the project will address a safety conflict between trains and vehicles entering a petroleum facility and enable the Port to meet existing and projected demand for exporting multiple types of petrochemicals. The Texas City Terminal Railway Company will contribute a 20 percent non Federal cost share.
Rio Grande Valley Texas - Improving Railroad Operations & Networks for Higher Operational Reliability, Safety, and Efficiency Project (Up to $11,690,000) Rio Valley Switching Company
The project was selected for Final Design and Construction and includes track rehabilitation and capacity improvement across five Ironhorse-owned short line railroads in Arizona, New Mexico, and Texas. The project will replace rail and ties, install ballast, resurface track, rehabilitate turnouts, resurface four at-grade crossings, and add two new sidings. The project aligns with the selection criteria by enhancing safety, improving system and service performance, and improving reliability as the project will restore the track to a state of good repair, enable 286,000-pound railcar capacity, and allow the railroads to meet growing demand. The Rio Valley Switching Company will contribute a 30 percent non-Federal cost share, which may include funding from Ironhorse Resources, Inc.
Palestine Texas – East Texas Revival Project - Phase 3 (Up to $8,538,972) Texas & Eastern Railroad, LLC
The project was selected for Final Design and Construction and includes the construction of four new rail tracks adjacent to the Texas & Eastern Railroad Palestine Depot, in Palestine, Texas. The project will install two sidings, one dedicated transload siding, and one new storage spur parallel to the east leg of the existing wye to eliminate a critical two-hour locomotive runaround operation. The project aligns with the selection criteria by improving system and service performance as the project will unlock new dedicated transload capacity and free the existing wye for expanded freight operations by providing alternative car storage. The Texas & Eastern Railroad will contribute a 20 percent non-Federal cost share, which may include funding from the Texas State Rail Authority. This project qualifies for the statutory set-aside for projects in Rural Areas.
Hondo Texas – Safety Performance and Upgrades for Rail (SPUR) (Up to $8,292,440) Hondo Railway, LLC
The project was selected for Project Development, Final Design, and Construction and includes the improvement and modernization of rail infrastructure in Hondo, Texas. The project will construct new industrial lead and connection tracks, extend a siding, install new turnouts and power-operated switches, and reconfigure track infrastructure. The project aligns with the selection criteria by enhancing safety, improving system and service performance, and improving reliability as the project will create bi-directional rail access and increase siding capacity, reducing blocked crossings. Hondo Railway will contribute a 30 percent non-Federal cost share, which may include funding from the Hondo Economic Development Corporation. This project qualifies for the statutory set-aside for projects in Rural Areas.
Starr and Hidalgo Counties Texas - Border Pacific Railroad Company Infrastructure Project to Support Prosperity in Starr and Hidalgo Counties, TX (Up to $6,381,000)
Border Pacific Railroad Company The project was selected for Project Development, Final Design, and Construction and includes the rehabilitation of approximately sixes of track and approximately 27 curves between Rio Grande City and Mission, Texas. The project will replace deteriorated rail and track components and add ballast. The project aligns with the selection criteria by enhancing safety, improving system and service performance, and improving reliability as the project will upgrade rehabilitated segments to FRA Class 1 track standards and enable 286,000-pound railcar capacity, resulting in increased freight capacity. The Border Pacific Railroad Company will contribute a 40 percent non-Federal cost share. This project qualifies for the statutory set-aside for projects in Rural Areas.
Gonzales Texas – Texas Shortline Locomotive Emissions Reduction Project (Up to $4,711,571) Texas Gonzales Northern Rail
The proposed project was selected for Construction and includes the modernization of locomotives across the TNW Corporation short line system in Texas. The project will retire four locomotives and replace them with five remanufactured locomotives and rebuild two locomotives into slug-mothers. The project aligns with the selection criteria by improving system and service performance as the project will reduce emissions, maintenance costs, and fuel consumption. The Texas Gonzales Northern Rail will contribute a 50 percent non-Federal cost share, which may include funding from the TNW Corporation. This project qualifies for the statutory set-aside for projects in Rural Areas.
McKinney Texas - Downtown Freight Rail Siding Relocation Planning Project (Up to $875,000) City of McKinney
The proposed project was selected for Project Planning and will support activities to evaluate the relocation and modernization of existing freight siding and switching operations for the Dallas, Garland & Northeastern Railroad in McKinney, Texas. The project aligns with the selection criteria by improving system and service performance and improving reliability as the project will assess alternatives for developing a new rail-served industrial facility within the Dallas, Garland & Northeastern Railroad corridor, including expanding industrial siding concepts and relocating the switching from the historic district to the industrial location. The City of McKinney will contribute a 30 percent non-Federal cost share.
CRISI applications were evaluated according to several criteria, including project readiness, technical merit, and project benefits. Eligible applications for the Crossing Safety Program were also evaluated on the basis of technical merit including Project Readiness, Project Benefits, Project Implementation and Management and similar criteria.
Last April, FRA announced a Notice of Funding Opportunity (NOFO) for the CRISI program intended to provide funding for projects that improve the safety, efficiency, and reliability of intercity passenger and freight rail. Under Secretary Duffy, the grant programs revamped criteria prioritize safety, the American family, and workforce development, job quality and wealth creation. Specifically, the Department is supporting projects that: reduce congestion, jumpstart ridership growth on passenger railroads, improve regional railroad infrastructure or develop safety programs to prevent trespassing and reduce injuries and fatalities.
In August, Secretary Duffy announced a $5.3 billion investment into rail projects across the U.S. that will enhance safety, upgrade infrastructure, and purchase new trainsets for Amtrak.
Photo: U.S. Department of Transportation Secretary Sean Duffy and (right) FRA Administrator David Fink