Published August 18, 2026
The U.S. Department of Transportation has announced a $5.3 billion investment in passenger rail infrastructure across 23 states, funding projects ranging from grade crossing closures to track improvements and new rail equipment.
The Federal Railroad Administration (FRA) will distribute the funding through a package authorized under the 2021 Infrastructure Investment and Jobs Act. The investment is expected to support construction and safety improvements at more than 1,000 rail crossings while eliminating more than 30 high-risk crossings.
About $2.2 billion of the package will also go toward equipment purchases for Amtrak.
Funding Targets High-Risk Rail Crossings
A major portion of the funding will address railroad crossings where roads and tracks meet at the same level.
According to the DOT, these crossings are the second-leading cause of rail-related deaths in the United States. The agency classifies a crossing as high-risk when it has recorded at least three accidents or two fatal incidents within the previous five years.
The new funding will allow transportation agencies to close some of these crossings, replace others with bridges and improve existing locations with new infrastructure and technology.
The projects are expected to create additional construction opportunities for contractors working on roads, bridges, rail infrastructure, signaling and other transportation systems.
Major Awards Across Several States
Several states and communities received significant awards under the program.
The Florida Department of Transportation received $356 million for improvements at as many as 910 highway-rail grade crossings. The work will focus on bringing existing crossings into better repair.
The North Carolina Department of Transportation received $299 million to eliminate nine grade crossings and construct sections of double track.
In Texas, the state DOT received $189 million to eliminate nine crossings in Dallas, Fort Worth and Terrell. An additional $39 million was awarded to Hays County for construction of a grade-separated bridge.
The city of Fairfield, Ohio, received $40 million to close two at-grade crossings and construct a new bridge to carry traffic over the rail line.
Other awards include $2.5 million for the city of New Orleans to repair aging platforms and canopies at the New Orleans Union Passenger Terminal. The station’s infrastructure is approximately 70 years old.
In Nebraska, the city of Crete received $1.1 million to evaluate eight existing grade crossings and determine what improvements may be needed in the future.
Funding Demand Exceeded Available Dollars
The FRA received 103 eligible applications from 78 organizations, with applicants requesting approximately $11.7 billion in total funding.
The $5.3 billion package will therefore cover only a portion of the projects submitted for consideration.
Funding comes through the National Railroad Partnership Program, established under the Infrastructure Investment and Jobs Act to support improvements to passenger rail infrastructure across the country.
The package also includes approximately $2 billion that had previously been allocated to California’s high-speed rail project before the Trump administration withdrew federal support.
Construction Activity Expected to Increase
The scale of the investment could generate substantial construction activity across the participating states.
Projects will include crossing closures, bridge construction, track improvements, repairs to passenger facilities and installation of new rail infrastructure and technology.
For transportation agencies and contractors, the funding provides a significant pipeline of rail-related work while addressing safety issues at some of the country’s highest-risk crossings.
