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3/9/2026
The New Mexico Department of Transportation (NMDOT) plans to invest $283.1 million in freight- and passenger-rail service over the next four years, according to its recently finalized 2026 State Rail Plan.
The plan outlines the priority rail projects through 2030 that will improve grade crossing safety, reduce motor vehicle congestion and improve freight efficiency, NMDOT officials last week in a press release.
Of the $283.1 million, NMDOT intends to invest $113.9 million in passenger-rail service projects; $165.2 million in safety improvement projects; and $4 million in freight-rail improvement projects. The plan prioritizes grade separations and freight connectivity projects that align with federal grant funding criteria, said NMDOT officials.
Key projects outlined in the plan include a grade separation project in Gallup, which was awarded $45 million from the Federal Railroad Administration (FRA); a grade separation project in Texico, which was awarded $73 million from the FRA and will be completed in partnership with the Texas Department of Transportation; a freight connectivity project in Santa Teresa, which received FRA funding of $37 million; a freight connectivity project in Clovis that received FRA funding of $1 million; and continued planning work for a proposed freight-rail line that would connect Farmington to the national rail network.