The bill establishes the "Railroad Crossing Safety Fund" as a nonreverting fund within the state treasury, aimed at improving safety at intersections where roads meet railroad tracks in New Mexico. It creates a railroad crossing safety program within the department, which will administer the fund and set rules for the funding process for eligible projects. The fund will consist of various sources, including appropriations and grants, and will allow for expenditures on safety improvements and necessary administrative costs, capped at three percent of the fund's annual balance. Additionally, the fund can be used as a state match for federal grants and will facilitate annual transfers to the state road fund for eligible projects starting October 1, 2026.

The bill appropriates $1,000,000 from the general fund to the railroad crossing safety fund for use in fiscal year 2027 and subsequent years, specifically for projects aimed at enhancing safety at road and railroad intersections. Importantly, any unspent funds at the end of a fiscal year will not revert to the general fund, ensuring that the money remains available for future safety initiatives. The provisions of this act are set to take effect on July 1, 2026.