Texas Senate Bill SB2366

Texas 2025 - 89th Regular

• Filed: 3/12/25
• Out of Senate Committee: 4/16/25
• Voted on by Senate: 4/30/25
• Out of House Committee: 5/20/25
• Voted on by House: 5/28/25
• Governor Action: 6/20/25

Caption

Relating to a grant program to fund certain short line railroad projects.

Impact

The implementation of SB2366 is expected to have a significant impact on the state’s transport infrastructure, particularly benefiting local economies reliant on short line railroads. By facilitating improvements and restorations, the bill aims to maintain and expand the operational capacity of these rail services, which are crucial for freight transport in rural and less accessible areas. Additionally, the focus on safety and efficiency is expected to contribute positively to various sectors dependent on reliable transportation services, thereby promoting broader state economic growth.

Summary

SB2366 introduces a grant program aimed at funding specific projects related to short line railroads in Texas. This bill seeks to enhance public safety, support economic development, and alleviate traffic congestion by providing financial assistance to districts operating short line railroads. The program revolves around awarding grants for projects that involve the replacement of tracks and bridges, improvements to rail capacity, and restoration of short line railways. An important stipulation of the bill is that the funding should complement other financial sources, ensuring a minimum 10% contribution from non-state entities.

Sentiment

The sentiment surrounding SB2366 has largely been supportive, particularly among stakeholders in the transportation and logistics sectors. Advocates argue that the grant program would fill a critical funding gap for short line railroads, which often struggle to finance necessary upgrades and maintenance due to limited financial resources. However, some concerns have been raised regarding the dependency on state funding and the long-term sustainability of the program, especially if future budgets are not aligned to continue supporting these initiatives.

Contention

Notable points of contention include discussions about the adequacy of the proposed funding structure and the potential administrative burden for districts applying for grants. There have been calls for clear guidelines on the eligibility of projects and transparency in the allocation of funds. The balance between federal, state, and local contributions is another area where differing opinions emerged, with some stakeholders advocating for a more substantial commitment from the state to ensure that critical projects do not slip through the cracks amid competing financial priorities. Ultimately, the bill emphasizes the need for collaboration between various levels of government to maximize the benefits offered to short line railroads.

Texas Constitutional Statutes Affected

Transportation Code

• Chapter 201. General Provisions And Administration
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