The City of Albuquerque has been selected for up to $18,513,752 in federal funding to rehabilitate the Sunport Rail Spur, a stretch of track that dates back to World War II and has had a segment activated for rail use. The funding would support rehabilitation of six miles of existing railroad.
The award comes through the federal Consolidated Rail Infrastructure and Safety Improvements program, known as CRISI, according to a project summary from railroads.dot.gov. The federal document lists the project as up to $18,513,752 and describes it as covering the rehabilitation and improvement of a rail spur in Albuquerque. KRQE reported the award this week.
The rail line has a long history tied to the city's industrial roots. It was constructed for and owned by the Atomic Energy Commission to serve Sandia National Laboratory, according to the Sunport's own account of the spur's past. The Sunport acquired the line from the federal government in 2022, setting the stage for its current redevelopment push.
A Rail Spur Already Seeing Use
The spur isn't just a planning document — it's already in use. New Mexico Transloading has activated the first segment of the former Kirtland Rail Spur and has invested about $1.4 million of its own money to rehabilitate the northern portion of the line, per the Sunport's account. The line branches off from the main rail corridor between Broadway Boulevard and Rio Bravo Boulevard, where it's meant to serve future industrial sites.
Those upgrades are expected to let New Mexico Transloading store and handle more rail cars, with the company slated to begin paying per-car fees to the Sunport starting in early 2026, the Sunport says. City officials have framed the arrangement as a way to attract new companies, support local jobs and strengthen Albuquerque's economy.
Bigger Ambitions for Sunport Land
The rail spur fits into a larger land play around the airport. Albuquerque's Aviation Department purchased 387 acres near the Sunport for $29 million in September 2025, according to the Albuquerque Journal. Mayor Tim Keller said at the time that the acquisition enables the development of a rail-based cargo transportation network in a strategic location between the Sunport and Mesa del Sol.
City officials have said activating the rail spur is a way to generate revenue for the airport while supporting broader regional economic activity. The same reporting noted that Aviation Department officials expect the activation to enable more efficient cargo transportation to support industrial projects across the region. A broader vision for the area includes a multimodal hub and inland port, alongside air, rail and roadway freight.
Part of a Much Larger National Push
Albuquerque's award is one piece of a sweeping national rail funding round. The CRISI program awarded grants to 105 projects across 45 states and the District of Columbia, totaling $2.3 billion, according to Trains.com. Those projects were selected from a pool of 368 applications that together sought $12.2 billion in funding.
Recipients of CRISI grants are required to contribute at least 20% of the total project cost, according to a report from Yahoo News.
