Houston, TX — Across Texas, trains move the products that power our economy, but they also intersect thousands of local roads and streets, creating both opportunity and risk. While roughly half of crossings on Texas Department of Transportation (TxDOT)-maintained highways are already grade-separated, this is only the case for about 9% of crossings on county and city roads. These off-system routes, often the lifelines of small towns, industrial corridors, and school districts, have long fallen through the funding gap.

That’s beginning to change. This week TxDOT launched the Off-System Rail Grade Separation State Fund Program, a first-of-its-kind initiative created by Senate Bill 1555 and backed by $250 million in state funds. The program provides grants to local governments for projects that eliminate at-grade rail crossings or construct new overpasses and underpasses—saving lives, reducing congestion, and supporting local economic growth.

Eligible applicants include counties, cities, special districts, and school districts, each encouraged to partner with the railroads that share these crossings. The program emphasizes collaboration and readiness, rewarding projects that have community support, coordinated rail engagement, and strong local matching funds. Importantly, it targets off-system crossings, filling a critical safety and mobility gap that federal programs have often overlooked.

The first Call for Projects opened November 3, 2025, with preliminary applications due by November 14. Selected projects will move to a detailed application phase before recommendations go to the Texas Transportation Commission for approval.

TxDOT’s approach reflects a growing national trend; state governments taking proactive steps to complement federal investments in rail infrastructure. With the Federal Railroad Administration’s new National Rail Partnership (NRP) program also underway, and other grants like the Rail Crossing Elimination (RCE) program and Consolidated Rail Infrastructure and Safety Improvement (CRISI) program already over-prescribed, initiatives like Texas’s provide a model for how state and local agencies can work together, alongside industry partners, to deliver results.

By prioritizing rail safety on the roads most Texans use every day, Texas is setting a precedent. Programs like this prove that railroads and policymakers take grade separation seriously, recognizing that safety and economic vitality move hand in hand.

Tips for Applicants

To improve your project’s competitiveness in the new TxDOT program, keep these best practices in mind:

  • Engage railroads early to secure written coordination or agreements

  • Demonstrate community consensus with letters from officials, businesses, and residents

  • Ensure shovel-readiness – early design and right-of-way progress improve competitiveness

  • Use current cost estimates and specify funding commitments clearly

  • Coordinate with MPOs for inclusion in TIP/STIP if within metro boundaries

  • Document economic impact (jobs, connectivity, freight movement) and safety benefits with data