S.B. No. 1555 establishes a grant program within the Texas Transportation Code to fund specific railroad grade separation projects aimed at enhancing public safety, promoting economic development, and alleviating traffic congestion. The new Section 471.010 outlines that the Texas Department of Transportation will administer this program, awarding grants to political subdivisions for projects that include railroad-roadway grade separations at non-state highway intersections and rail-pedestrian grade separations at public crossings. Each grant must be approved by the Texas Transportation Commission, which requires that at least 10 percent of the total project costs be sourced from non-state funds.

The bill also stipulates that funding for the grant program will come exclusively from legislative appropriations and external gifts or grants, explicitly prohibiting the use of state highway fund money for these grants. Additionally, it mandates that any political subdivision receiving a grant must designate the department to manage the contracting and oversight of the project, and the commission is tasked with adopting necessary rules for implementation by October 1, 2025. The act will take effect immediately upon receiving a two-thirds vote from both legislative houses or on September 1, 2025, if that threshold is not met.

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