$2.4 billion in federal money headed to 122 railroad projects

Railroad projects in over 40 states are receiving billions of dollars.

The Federal Government has allocated $2.4 billion in railroad grants for 122 projects across the United States, with a focus on smaller railroads.

The grants, announced by the Federal Railroad Administration, cover projects in 41 states and Washington, D.C., aimed at track and bridge upgrades, training enhancement, and exploring cleaner-burning alternatives to traditional diesel rail technology.

Driving the news: Funding for the grants largely comes from the 2021 infrastructure law supported by President Joe Biden, with this year’s allocation of $2.4 billion following last year’s distribution of $1.4 billion in rail grants.

The big picture: Some of the grants will address rail safety concerns, particularly highlighted after a hazardous chemical spill caused by a train derailment in Ohio in February 2023.

  • Notable projects receiving funding include a $215 million grant for a Hudson River bridge replacement in New York, track consolidation in Illinois to support higher speed rail connection between cities, and improvements to Amtrak tracks in southern California’s Orange County.

What we’re watching: Future-focused grants involve the development of hydrogen-powered locomotives to reduce greenhouse gas emissions and upgrades to intermodal railyards in Michigan and Milwaukee.

What they’re saying: “Each project advances a future where our supply chains are stronger, passenger rail more accessible, and freight movement safer and more efficient,” said Transportation Secretary Pete Buttigieg in a statement.

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