The city of Albuquerque is moving forward with its Rail Trail project despite losing a significant portion of federal funding. On September 9, the U.S. Department of Transportation withdrew an $11.5 million grant intended for the construction of the trail, which will form a 7-mile loop around Downtown and Barelas.
This grant was part of the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program and accounted for nearly 30% of the project's total budget of $39.5 million. The remaining funds are sourced from city or state allocations, with an additional $3 million in federal funding earmarked by the U.S. Senate.
In a letter to the city, the U.S. DOT explained that the project "no longer aligns" with its new priorities under the Trump administration, which focus on car-centric developments. The department emphasized that it aims to ensure "taxpayer dollars are used efficiently in ways that maximally benefit the American people and improve their quality of life."
Despite this setback, Albuquerque plans to continue work on parts of the Rail Trail project, specifically at Sawmill and Central crossings. According to a city release, the Sawmill section is expected to open in late fall, while completion of the Central crossing is anticipated in 2026.
Terri Cole, president and CEO of Greater Albuquerque Chamber of Commerce (GACC), said that the Rail Trail supports their mission to foster a thriving business environment. She pointed out that for years, GACC has backed this urban trail initiative as it will allow residents and visitors to travel from historic Rail Yards through various city landmarks. The Chamber has also supported initiatives like forming a Business Improvement District (BID) and a Tax Increment Financing (TIF) District to enhance Downtown's economy alongside the Rail Trail.
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