OMAHA, Neb. — A significant allocation of $2.4 billion in federal grants has been announced to support 122 railway projects across the United States, with a sizable portion directed towards smaller railroads.
This funding, revealed on Tuesday by the Federal Railroad Administration, will affect projects in 41 states along with Washington, D.C. The majority of the funds will be utilized for enhancements in track and bridge infrastructure. Additionally, some of the grants will focus on training initiatives and exploring cleaner fuel options as alternatives to the traditional diesel engines currently employed by railroads. Smaller rail companies will also receive financial assistance to upgrade to more energy-efficient locomotives.
The funding largely stems from the infrastructure bill passed in 2021, a key initiative supported by President Joe Biden. In the prior year, the government allocated $1.4 billion in similar grants for rail projects.
Transportation Secretary Pete Buttigieg explained that, “Each project contributes to a future where our supply chains become more robust, passenger rail options are easier to access, and the safety and efficiency of freight transportation improve.”
Moreover, the grants will also address safety issues that have emerged following a train derailment involving Norfolk Southern in East Palestine, Ohio, in February 2023. This incident resulted in a hazardous chemical spill that ignited. Since then, regulators have urged rail companies to enhance safety measures, and various initiatives have emerged within the industry. However, proposed legislative changes aiming to tackle the systemic safety shortcomings have stagnated in Congress, particularly in this election year.
The most substantial single project funded through this grant is a $215 million allocation towards replacing a bridge over the Hudson River, owned by CSX, connecting Albany and Rensselaer, New York. Amtrak heavily depends on this bridge. The state is funding the remaining 60% of the bridge replacement project, which has a total estimated cost of $634.8 million, and will enable concurrent crossings for two trains and pedestrians. Currently, each day, around 12 Amtrak trains along with several freight trains traverse this bridge, which was constructed in 1901.
In Illinois, nearly $160 million will be invested to consolidate the rail tracks of Union Pacific and Norfolk Southern in Springfield. This endeavor aims to facilitate a high-speed rail route connecting Chicago and St. Louis.
Another grant, potentially amounting to $100 million, is intended to strengthen Amtrak’s track infrastructure in southern California’s Orange County against climate-related threats and enhance the overall reliability of the tracks.
Several initiatives, including one exceeding $48 million, are dedicated to developing hydrogen-powered locomotives that could significantly curtail greenhouse gas emissions within the railway sector.
Additional funding includes $67 million allocated for the expansion of an intermodal rail yard in Michigan, which manages the transfer of shipping containers between trains and trucks. An investment of nearly $73 million is aimed at improving the Muskego railyard in Milwaukee.
However, the lion’s share of the funding—almost $1.3 billion—will support 81 projects at smaller short-line railroads throughout the country. Chuck Baker, president of the American Short Line and Regional Railroad Association, noted the grants would provide crucial assistance to these smaller entities.
“Congress and the FRA can be assured that short lines will effectively utilize these public funds to create innovative and efficient customer service solutions that connect rural and small-town America with both national and international markets,” Baker stated.