The U.S. Department of Transportation has withdrawn an $11.5 million grant from the city of Albuquerque for the Rail Trail project, a planned 7-mile loop designed to connect pedestrians and cyclists around Downtown and Barelas. The federal grant, which made up nearly 30% of the project’s total $39.5 million budget, was revoked on September 9 after the department stated that the project “no longer aligns” with new priorities under the Trump administration, which emphasize car-centric initiatives. The department said funding was withdrawn to ensure “taxpayer dollars are used efficiently in ways that maximally benefit the American people and improve their quality of life.”
Despite this loss of federal funding, city officials have announced they will continue work on certain segments of the Rail Trail. Construction will proceed on both the Sawmill section—expected to open in late fall—and the Central crossing portion, set for completion in 2026.
Terri Cole, president and CEO of the Greater Albuquerque Chamber of Commerce (GACC), commented on the importance of continuing with the project: “The Rail Trail aligns with our mission to foster a thriving business environment.” She added that “for years, the Chamber has supported this urban trail project, which will enable residents and visitors to traverse from historic Rail Yards through various city landmarks.”
The Chamber has also endorsed measures such as establishing a Business Improvement District (BID) and a Tax Increment Financing (TIF) District aimed at strengthening Downtown’s economy alongside development projects like the Rail Trail.
