New Mexico DOT finalizes state rail investment plan

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The New Mexico Department of Transportation (NMDOT) said it has finalized its $283.1 million rail investment plan for the next four years.

The 2026 State Rail Plan establishes the department’s long-term vision for rail modernization through 2045. The plan identifies rail as a key economic driver. As such, the plan advances strategic projects to improve railroad crossing safety, reduce roadway congestion and enhance freight efficiency as a way to increase the state’s competitive position.

“The 2026 State Rail Plan is a roadmap for strengthening New Mexico’s transportation future,” David Harris, executive director of Modal Programs, said. “By aligning priority projects with federal funding opportunities, we are building a safer, more competitive rail network that supports communities and industry statewide.”

Among the priorities listed in the plan are $44.89 million in Federal Railroad Administration (FRA) funding for a railway-highway grade separation project in Gallup; $73 million in FRA funding for a grade separation project in Texico; $37 million in FRA funding for project design and construction in Santa Teresa, and $1 million in FRA funding for a project in Clovis.

Officials said having these projects included in the State Rail Plan ensures the projects remain eligible for future FRA and other federal funding opportunities.

The plan is available online at the NMDOT website. Officials said the plan strengthens the state’s ability to secure national funding and deliver long-term rail improvements statewide.