Laredo to Receive US$58.5 Million for Rail Grade Separation Project

The city of Laredo, Texas, will receive US$58.5 million in state funding for the construction of a rail grade separation project at Santa María Boulevard, an infrastructure initiative designed to improve mobility and safety in one of the most important logistics corridors along the U.S.–Mexico border.

The funding was approved by the Texas Transportation Commission as part of a US$160.4 million package allocated to eliminate at-grade rail crossings in several cities across the state.

The resources come from the Off System Rail Grade Separation State Fund, a program created by the Texas Legislature in 2025 to support local governments in building overpasses and underpasses that eliminate direct interaction between trains and road traffic.

Strategic project for border logistics

The project approved in Laredo includes the separation of the Canadian Pacific Kansas City rail crossing at Santa María Boulevard, with a total estimated investment of US$61.6 million.

Of that amount, US$58.5 million will be provided by the state, making it one of the largest projects funded through the program.

The construction of a grade separation will eliminate direct crossings between trains and vehicles, reducing accident risks, traffic congestion, and delays in freight transportation.

Improving safety and economic competitiveness

According to Marc Williams, Executive Director of the Texas Department of Transportation, projects like this are intended to strengthen safety and improve the efficiency of the state’s transportation system.

By eliminating interactions between trains and road traffic, grade separations help reduce delays, enhance safety, and support economic competitiveness in communities with significant logistics activity.

Rail grade separation projects are considered essential infrastructure for cities with heavy freight traffic, as they allow cargo transportation and urban mobility to continue without disruption.

State fund also designed to attract federal investment

In addition to the funding approved for specific projects, the state commission also reserved US$89.6 million in additional funds to serve as matching resources for potential federal infrastructure grants.

State authorities indicated that these funds may be assigned once the results of federal grant programs become available.

• Other cities benefiting from the program include:
• Amarillo, with US$57 million
• Houston, with US$36.7 million
• San Antonio, with US$5 million

For cities like Laredo, one of the most important inland ports for international trade in North America, projects like this are critical to improving transportation efficiency and supporting the continued growth of cross-border commerce.