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

SB 2366 creates a state grant program to fund specific improvements for smaller railroads (Class II or III as defined by federal law). The program provides grants to railroad companies or local transportation districts to replace tracks/bridges, improve rail capacity, or restore rail lines, aiming to enhance safety, economic development, and reduce traffic. Grants require at least 10% non-state matching funds and must be approved by the Texas Transportation Commission. Funding comes only from state appropriations or federal grants - not highway funds - and the program became law on June 20, 2025.