New Mexico Department of Transportation Finalizes 2026 State Rail Plan

Photo by David C. Lester

SANTA FE –– THE NMDOT last week released its State Rail Plan for 2026, reporting $283.1 million in prioritized rail investments over the next four years.

The plan also provides a long-term vision for rail modernization through 2045. Positioning rail as a key driver of economic growth, freight mobility, passenger connectivity, and public safety, the plan advances strategic projects that will improve railroad crossing safety, reduce roadway congestion, enhance freight efficiency, and strengthen the state’s competitiveness.

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

Key Projects and Federal Partnerships

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.

Inclusion in the State Rail Plan ensures these projects remain eligible for future FRA and other federal funding opportunities.

The 2026 State Rail Plan is available on the NMDOT website or using the direct link Click to view the full 2026 State Rail Plan.