August 10, 2026 - Texas Railroad Association -
For communities that lie along busy railroad tracks, the effects of an rail crossing extend far beyond the time motorists spend waiting for a train to pass. Occupied crossings can delay an ambulance, interrupt a school route, back traffic into nearby neighborhoods and complicate access to local businesses. These challenges have grown along with Texas’ population, freight traffic and economy.
This year, however, Texas took an important step toward replacing some of it's busiest crossings with permanent infrastructure solutions, as the Texas Transportation Commission approved $160.4 million for the state’s first projects under the new Off-System Rail Grade Separation State Fund Program.
The program was established by Senate Bill 1555 during the 2025 legislative session and supported by a $250 million appropriation. It was created specifically to address crossings on city, county and other local roads that are not part of the state highway system. Before this program, communities seeking to build an overpass or underpass at one of these crossings often had to assemble funding from several local and federal sources for projects that can cost tens—or even hundreds—of millions of dollars.
The new program gives eligible local governments a dedicated state opportunity for planning, design, right-of-way acquisition, utility relocation and construction. Projects must improve public safety, support economic development or reduce traffic congestion, and at least 10 percent of the project cost must come from a non-state source.
The first round of awards will support five projects in four of the state’s most important freight regions. In Amarillo, the program will provide $20.3 million for a BNSF crossing project at Northeast 24th Avenue in Potter County and $36.7 million for another BNSF crossing at South Georgia Street in Randall County. Houston’s Griggs–Long–Mykawa Grade Separation will receive $40 million toward a larger $165.2 million project. In Laredo, the CPKC Santa Maria Boulevard Grade Separation will receive $58.5 million, while San Antonio will receive $5 million for improvements at the Union Pacific crossing near Zarzamora Street and Frio City Road.
Together, the projects reflect the variety of communities affected by rail-roadway conflicts, from major metropolitan areas and international trade gateways to growing regional centers.
Although each project is different, the basic solution is straightforward: separate the roadway and railroad so that vehicles and trains can no longer potentially intersect. That separation can eliminate the possibility of a collision, reduce delays for motorists and allow trains to move through the area without impacting their own mobility.
It can also improve emergency access and provide communities with greater certainty as they plan new housing, commercial development and industrial growth. For railroads, grade separations help strengthen the efficiency and resiliency of a network that moves hundreds of millions of tons of freight across Texas annually.
The Texas Transportation Commission also reserved the remaining $89.6 million in program funding to help provide state matches for projects that may receive federal grants like the Railroad Crossing Elimination (RCE) program. That decision could allow Texas to leverage its initial investment and bring additional federal transportation dollars into the state.
It also acknowledges an important reality: the demand for grade separation funding greatly exceeds the resources available in any single program. Moving these projects forward will continue to require cooperation among the state, local governments, railroads, federal agencies and community stakeholders.
With the initial round of applicants over-prescribed (there were over $1 billion worth of potential projects applied for across the state), it will be incumbent on state policy makers to continue this popular program and investing in Texas' transportation network.
The first awards represent an important transition from identifying crossing problems to building lasting solutions. They will not resolve every rail-roadway conflict in Texas, indeed the state has over 10,000 crossings on the rail system. But the creation and implementation of the program establish a model that can be expanded in future legislative sessions.
By investing in infrastructure that separates roadways from railways, Texas is improving safety while protecting the mobility and freight capacity needed to support a growing state. The result will be safer crossings, more reliable routes and stronger connections between Texas communities and the industries that sustain them.
Texas Railroad Association1005 Congress Ave. #1070Austin, TX 78701