SANTA FE, NM — The New Mexico Department of Transportation (NMDOT) has finalized the 2026 State Rail Plan, outlining $283.1 million in prioritized rail investments over the next four years and establishing a long-term vision for rail modernization through 2045.
The plan positions rail as a key driver of economic growth, freight mobility, passenger connectivity, and public safety. It advances strategic projects that will improve railroad crossing safety, reduce roadway congestion, enhance freight efficiency, and strengthen New Mexico’s competitiveness.
“The 2026 State Rail Plan is a roadmap for strengthening New Mexico’s transportation future,” said David Harris, Executive Director of Modal Programs at NMDOT. “By aligning priority projects with federal funding opportunities, we are building a safer, more competitive rail network that supports communities and industry statewide.”
The plan prioritizes major grade separation and freight connectivity projects, including:
- Gallup - $44.89 million in Federal Railroad Administration (FRA) funding awarded for a railway-highway grade separation project. Construction start date pending.
- Texico - $73 million in FRA funding awarded for a grade separation project, anticipated to begin in 2030, in partnership with the Texas Department of Transportation.
- Santa Teresa - $37 million in FRA funding awarded for project design and construction. Design is now underway.
- Clovis - $1 million in FRA funding awarded for project design, now underway. Construction funding is not yet identified.
- Farmington Freight Rail Connection - Continued planning for a proposed new freight rail link connecting Farmington to the national rail network. Timeline to be determined.
| Your local Volvo Construction Equipment dealer |
|---|
| Faris Machinery |
| Faris Machinery |
Inclusion in the State Rail Plan ensures these projects remain eligible for future FRA and other federal funding opportunities.
By aligning state priorities with federal investment criteria, the 2026 State Rail Plan strengthens New Mexico’s ability to secure national funding and deliver long-term rail improvements that enhance safety, mobility, and economic opportunity statewide.
