The Texas Transportation Commission has awarded $160.4 million from a new state rail fund — with Laredo landing the largest share at $58.51 million for a major transportation corridor project.
The funding marks the inaugural round of the Texas Off-System Rail Grade Separation State Fund Program, a $250 million initiative created by Senate Bill 1555 to address rail crossings not located on the state highway system but frequently clogged by long freight trains.
The largest single award — $58.51 million — will fund the Canadian Pacific Kansas City Limited (CPKC) rail grade separation and safety enhancement project at Santa Maria Boulevard in Laredo, according to Texas Rail Advocate and Progressive Railroading.
Laredo officials said the Santa Maria project will eliminate at-grade crossings in one of Laredo’s busiest corridors, separating CPKC freight trains from roadway traffic to reduce congestion, improve safety and accelerate freight movement through the cross-border hub.
Laredo is already one of the nation’s busiest rail gateways for U.S.-Mexico trade. The Laredo Economic Development Corp. says 213,008 rail cars crossed through Port Laredo from Mexico in 2025.
Federal transportation data also identifies Laredo as one of the top rail connection ports with Mexico, and shows rail remains a major — if secondary — mode for cross-border commerce, accounting for about 11.7% of the total value of U.S.-Mexico freight flows in 2024.
Two-way trade at Port Laredo totaled $354 billion in 2025, compared to$339 billion in 2024, according to Census Bureau data analyzed by WorldCity.
Five projects statewide
In total, five projects in Amarillo, Houston, Laredo and San Antonio received awards from the Texas Transportation Commission in this first round. The grants include:
$40 million for the Griggs-Long-Mykawa grade separation project in Houston. associated with TxDOT’s larger State Highway 35 improvements.
$36.7 million for a BNSF crossing at South Georgia Street in Amarillo.
$20.3 million for a BNSF crossing at Northeast 24th Avenue in Amarillo.
$5 million for a Union Pacific crossing at Zarzamora Street and Frio City Road in San Antonio.
TxDOT’s rail division presented the funding recommendations to commissioners in Austin, with roughly $90 million of the $250 million total program held in reserve as the agency pursues matching federal funds to stretch the state dollars further.
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