The Federal Railroad Administration (FRA) issued a Notice of Funding Opportunity (NOFO) that makes available over $153 million in funding for the Restoration and Enhancement (R&E) Grant Program.

Grant funding will assist with operating costs for eligible projects that will establish service on new routes, restore service on routes that formerly had intercity passenger operations, and enhance service on existing routes.

Impact of Rail Upgrades

The passenger rail upgrades will complement the dozens of major rail projects underway across the country and improve the intercity passenger rail network, thanks to the Bipartisan Infrastructure Law.

“The quality of our intercity passenger rail services has a major impact not only on the experiences of millions of riders but also on the economic vitality of our communities as well as our efforts to combat climate change,” said U.S. Transportation Secretary Pete Buttigieg. “Safer, more frequent, and more accessible passenger rail services — made possible with funding from the Bipartisan Infrastructure Law — will expand travel and commuting options, creating newly efficient and sustainable opportunities to get around the country.”  

What’s Covered

The R&E Program covers an array of expenses up to the first six years of service for newly initiated, restored, or enhanced passenger rail operations while the services build their ridership and revenue base and bolster their long-term potential.

The expenses include operating costs, such as staffing costs for train crew members; station costs, such as ticket sales, customer information, and train dispatching services; train yard operations costs; routine planned maintenance costs of equipment and train cleaning costs; marketing costs; and administrative costs, among other expenses.

By expanding the availability of passenger rail and providing riders with high-quality services, the R&E Program also encourages a modal shift to safe and environmentally friendly transportation options.

The funding represents the first round of R&E Program funding since the program was greatly increased by the infrastructure law.

It also follows billions of dollars of funding already made available this year through the Federal-State Partnership for Intercity Passenger Rail Program and the Consolidated Rail Infrastructure and Safety Improvements Program.

Taken together, these investments build on the Biden-Harris Administration’s generational investment in passenger and freight rail that will revitalize local economies, strengthen rail safety, and modernize the nation’s rail network.