The Texas Transportation Commission has allocated $160.4 million from a newly established state rail fund, with Laredo receiving the largest portion: $58.51 million for a significant transportation corridor project. This funding represents the first allocation from the Texas Off-System Rail Grade Separation State Fund Program, a $250 million initiative established by Senate Bill 1555. The program aims to tackle rail crossings not on the state highway system that are frequently obstructed by lengthy freight trains.

The most substantial single award, $58.51 million, will support the Canadian Pacific Kansas City Limited (CPKC) rail grade separation and safety enhancement project at Santa Maria Boulevard in Laredo, as reported by Texas Rail Advocate and Progressive Railroading.

Laredo officials have stated that the Santa Maria project will eliminate at-grade crossings in one of the city's most active corridors. By separating CPKC freight trains from road traffic, the project is expected to alleviate congestion, enhance safety, and expedite freight movement through this vital cross-border hub.

Laredo is already recognized as one of the busiest rail gateways for U.S.-Mexico trade in the nation. The Laredo Economic Development Corp. reported that 213,008 rail cars transited through Port Laredo from Mexico in 2025.

Furthermore, federal transportation data designates Laredo as a leading rail connection port with Mexico. The data indicates that rail continues to be a significant, albeit secondary, mode for cross-border commerce, accounting for approximately 11.7% of the total value of U.S.-Mexico freight flows in 2024.