Off-System Rail Grade Separation State Fund Program

Senate Bill 1555 (89th Texas State Legislature) established the Texas Off-System Rail Grade Separation State Fund Program, authorized under Transportation Code § 471.010. This program provides financial assistance to eligible governmental entities in Texas for rail grade separation projects that improve public safety, support economic development, and reduce traffic congestion. The Legislature allocated $250 million through a supplemental budget appropriation. The Department’s administrative rules governing implementation and administration of the Program are located at 43 TAC §§7.120 – 7.134 and became effective October 15, 2025.

Program overview

Funding is available for project development and construction of projects that eliminate one or more existing adjacent at-grade rail-highway crossings or provide a grade-separated pedestrian-rail crossing.

Project eligibility

To be eligible for funding under the program, a project must:​

1. be for the construction of a grade separation structure that will either eliminate one or more adjacent at-grade rail-highway crossings or provide a grade separated pedestrian-rail crossing;​
2. be located off the state highway system (roadways that are not underTxDOT’s jurisdiction);
3. increase public safety, enhance economic development, or reduce traffic; and​
4. constitute a logical, self-contained unit of work that can be constructed as an independent project whether it is proposed as an independent project or as apart of a larger transportation project.

Program funding may be used for the following:

• Planning, detailed design activities including preparation of construction plans, environmental, right of way (ROW) acquisition, and utility adjustment
• Project construction

Eligible project sponsor

The project sponsor must be the political subdivision of the state (e.g., counties, cities, special districts, and school districts) that has jurisdiction over the project's location, authority to undertake the project, and authority to enter into an agreement with TxDOT.

2025 Call for projects

TxDOT will hold a Call for Projects beginning November 3, 2025. This Call for Projects will consist of a Preliminary Application and a Detailed Application. The applications will be web-based, submitted online through TxDOT’s Rail Division website.​ There is no limit to the number of projects sponsors can submit.

The Preliminary Application is designed to capture high-level project details, enabling the Committee to assess funding eligibility, challenges encountered by the community by the rail grade crossing, benefits created by the proposed project, and initial project readiness.

If a proposed project is selected for further evaluation, project sponsors will then complete a Detailed Application. The Detailed Application requests additional details, including, but not limited to, project complexity, project costs, letters of support, a conceptual layout or design plan if applicable, and ability to meet non-State match requirements.

Through the Call for Projects, selected projects will be recommended to the Texas Transportation Commission for final approval and awards.

Webinar information

To assist project sponsors, TxDOT will host a webinar on October 28, 2025, to provide guidance on eligibility and the application process. You may pre-register here - Register for webinar

Date: Tuesday, Oct. 28, 2025
Time: 10– 11:30 a.m. (CST)
Format: Virtual via MS Teams

Join Meeting

Meeting ID: 257 852 046 285 0
Passcode: MA2Pt9Mf

Dial in by phone
+1 737-787-8607,,486630998# United States, Austin
Phone conference ID: 486 630 998#

Call for project materials

• Transportation Code - 43 TAC §§7.120 – 7.134 (effective Oct. 15, 2025)
• Application considerations and evaluation criteria
• Program Guide