City of Midland spokesman Ryan Stout says the crash happened at a Union Pacific railroad crossing around 4:30 p.m. Thursday.
Stout says 10 of those injured are in critical condition at Midland Memorial Hospital, while the seven others are in stable condition.
National Transportation Safety Board spokesman Peter Knudson says the NTSB is investigating. A message left with a Union Pacific spokeswoman was not returned.
The parade was supposed to end at a "Hunt for Heroes" banquet. The wounded service members were then going to be treated to a deer-hunting trip this weekend.
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