Pennsylvania allocating $55 million to modernize, replace freight rail infrastructure

January 6, 2025

Pennsylvania is allocating millions of dollars to maintain and modernize its top-ranked railroad network. This investment includes building new rail services and upgrading the state’s extensive 5,600-mile freight line system. 

The Pennsylvania Department of Transportation (PennDOT) is announcing $55 million in grants to advance railroad infrastructure projects around the state. The grants will work to improve mobility options for Pennsylvania residents and to modernize the state’s freight and passenger rail services for future generations. 

RELATED: Pennsylvania transit system receives $153 million in emergency funding to run through July

“Expanding and improving Pennsylvania’s rail freight network will support family-sustaining jobs and connect Pennsylvania communities to the global economy while bolstering local economic development,” PennDOT Secretary Mike Carroll said. “These investments will create opportunities for generations of Pennsylvanians to come and will provide key mobility across the Commonwealth.”  

PennDOT currently has two rail-dedicated grant programs that provide funding to renovate, maintain and modernize the state’s rail infrastructure, while simultaneously enhancing economic viability in the region. Approved annually by the State Transportation Commission, the two programs are primarily funded by PennDOT’s Capital Budget and cover up to 70% of a rail project’s total cost. 

PennDOT’s first program, the Rail Freight Assistance Program (RFAP), is a freight-oriented initiative. Primarily endowed by the state’s Multimodal Fund, RFAP projects work to maintain the economic vitality of Pennsylvania’s freight railways and boost economic development through new and expanded rail service. 

The second initiative, the Rail Transportation Assistance Program (RTAP), delivers grants to conduct transformative rail maintenance and expansion projects statewide. Also known as the Capital Budget, RTAP provides funding to eligible applicants under the Capital Budget Act, including rail operators, rail-served businesses and industry stakeholders. 

In all, this round of RFAP and RTAP grants will include funding for a variety of construction, rehabilitation and expansion initiatives, totaling more than 30 projects throughout the state.  

This year’s highest-funded project will secure $13.1 million to rehabilitate and improve the condition of the 25th Street Viaduct in Philadelphia County. Servicing freight rail lines above vehicle traffic on 25th Street, the almost century-old bridge is in disrepair and in dire need of rejuvenation. The project, led by CSX Transportation, will address years of neglect and public calls for the structure’s modernization. 

 Below is a list of some of the highest-funded projects and their total funding allocations: 

  • Wheeling and Lake Erie Railway – $5.8 million to develop long-term safety improvements and rehabilitate six bridges in Allegheny, Washington, Fayette and Westmoreland counties. 
  • NorthPoint Development, LLC – $3.8 million to add over 13,000 feet of new track and improve rail infrastructure at the Kinder Morgan terminal Rail Yard in Bucks County. The project will also expand the facility and enhance system operations. 
  • Buffalo & Pittsburgh Railroad, Inc – $2.9 million to conduct a variety of rehabilitation work on the Laurel Subdivision in Clearfield and Elk counties, including tie replacement, track resurfacing, brush cutting, grade crossing rehabilitation and installation of defect detection equipment. 
  • RJ Corman Railroad Company Pennsylvania Lines – $2.9 million to replace nearly 44,000 feet of track on the Cresson and Cherry Tree divisions in Cambria and Clearfield counties. 
  • Union Railroad – $2.6 million to replace almost 1,400 ties and upgrade rail infrastructure on the High Grade Bridge in Allegheny County. 

Combined, state funding for these projects represents a nearly 30% increase in freight rail spending from 2023’s RFAP and RTAP grant dispersals. For 2024, PennDOT emphasized the importance of reinforcing Pennsylvania’s economy and mobility options for residents. 

PennDOT will likely announce 2025’s grant application window this summer and future award selections in December. More information on the RFAP and RTAP initiatives can be found on the state’s rail transportation webpage or on the grants.gov online listings


Photo by Al d’Vilas

Brady Pieper

written for various daily and weekly publications in Texas and Colorado, specializing in the government market and in-depth bill coverage. Graduating from the University of Texas at Austin with a degree in Journalism, Pieper has been at the forefront of public and private sector communications and government initiatives. Pieper recently joined the Government Market News team as a content writer and anticipates continuing SPI’s long-standing tradition of delivering timely, accurate and significant government news to our readers and partners.

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