Bill > SB2366

This bill establishes a new grant program administered by the Texas Department of Transportation to support short line railroads, which are smaller, local railroad companies classified as Class II or Class III by the federal Surface Transportation Board. The program aims to increase public safety, enhance economic development, and reduce traffic by providing grants to districts that own or operate short line railroads for projects such as replacing tracks or bridges, improving rail capacity, or restoring railways. To be eligible for a grant, districts must provide at least 10 percent of the total project costs from sources other than the state, and grants can be used as matching funds to secure additional project funding. The grants will be funded exclusively through legislative appropriations, gifts, and grants, with the explicit prohibition of using state highway funds. The Texas Transportation Commission will be responsible for approving grants and adopting rules to implement the program, with a deadline of October 1, 2025, to establish these rules. The bill will take effect immediately if it receives a two-thirds vote in the legislature, or on September 1, 2025, if it does not receive the necessary immediate-effect vote.

Budget and Finance, Transportation and Infrastructure

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2366