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Freight train

FRA selects 41 rail projects for $5.3B in funding

August 19, 2026

The Federal Railroad Administration (FRA) plans to invest $5.3 billion in rail projects designed to improve safety, upgrade essential infrastructure and buy new locomotives to expand passenger rail. 

Delivered through the National Railroad Partnership Program (NRPP), the FRA selected 41 projects in its most recent funding round. Selected projects predominantly revolve around enhancing intercity passenger rail service, prioritizing connectivity and safety enhancements. The administration targeted high-risk crossings that have sustained frequent accidents and fatal events over the last five years. 

Projects receiving the largest awards include: 

Amtrak will receive $2.1 billion to buy 43 Made-in-America trainsets and make various improvements across the nation. These trainsets will replace the corporation’s aging fleet and legacy equipment. Amtrak will contribute a 20 percent match for the funding and may potentially receive state financial support to improve system and service performance and reliability. 

Amtrak will also spend $572 million to modernize Midwest maintenance facilities in Illinois. The corporation will relocate maintenance facilities from its 14th Street Yard to the to-be-acquired Canal Street Yard. Amtrak will also provide a 20 percent match for the project. 

The Texas Department of Transportation (TxDOT) has been selected for a $385 million award for the Sunset Limited Grade Separations project. The department will address seven grade separations across five cities. Once completed, the initiative will remove rail-vehicle and rail-pedestrian conflict points and accommodate rail and roadway traffic demands. TxDOT will provide a 20 percent match. 

The Florida Department of Transportation (FDOT) will use $356.1 million to improve and upgrade 910 highway-rail grade crossings to a state of good repair. Supported in part by a 20 percent funding match by FDOT, the project will implement infrastructure changes that reduce grade crossing incidents, improve schedule adherence and maintain consistent operating conditions. 

The North Carolina Department of Transportation (NCDOT) will receive $300 million for the Piedmont Corridor Safety Program. The project will improve grade crossings and tracks across the state. These include: 

  • Closing nine at-grade crossings on North Carolina Railroad Co.-owned infrastructure. 
  • Closing six at-grade crossings and building two grade separations in Guilford County. 
  • Closing three at-grade rail crossings and building two grade separations in Durham County. 

Plans include installing double track segments and associated infrastructure enhancements across three counties. Additional work will implement trespassing prevention efforts along the Piedmont Corridor. NCDOT will contribute a 28.53 percent funding match. 

TxDOT will receive another $189.9 million for the Texas Eagle and Heartland Flyer Grade Separations project. Plans call for building grade separations at three locations to remove nine crossings within Fort Worth, Dallas and Terrell. TxDOT will provide a 20 percent funding match to mitigate the risk of rail-vehicle collisions and improve the reliability of intercity passenger rail service. 

The Wisconsin Department Transportation (WisDOT) will spend $140.7 million to overhaul around 41 locomotives servicing Amtrak’s Midwest and Pacific Northwest routes. The project will restore and modernize core assets to keep the rail fleet in a state of good repair. WisDOT will contribute a 20 percent funding match alongside other participating DOTs from collaborating states, including Illinois, Michigan, Missouri, Oregon and Washington. 


Photo by Jiri Ikonomidis from Pexels

This story is part of the weekly Texas Government Insider digital news publication. See more of the latest Texas government news here. For more national government news, check out Government Market News daily for new stories, insights and profiles from public sector professionals.

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