USDOT Looks to Speed Delivery of IIJA Rail Funding

by Sean Jeans-Gail, VP of Gov’t Affairs + Policy

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Media reports indicate that the U.S. Department of Transportation is launching a new initiative to accelerate the delivery of rail grants authorized by the 2021 Infrastructure Investment and Jobs Act (IIJA), delivering funding for projects ahead of November’s midterms.

According to Bloomberg Government, the USDOT initiative centers around a plan to award two years’ worth of Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program projects by September 2026. Fast‑tracking the awards could benefit hundreds of short‑line railroads — and the communities they serve — through upgrades to freight rail infrastructure. Bloomberg Government reports that sources close to the department believe this could lead to a wave of groundbreaking opportunities for GOP incumbents, as the Trump Administration looks for ways to help candidates highlight economic bright spots in a faltering economy.

Passenger Rail Could Benefit as Well

However, it’s not just short line freight railroads that may stand to benefit. The FRA still has billions in IIJA funds to distribute across several rail programs — including over $4 billion in funds from the Federal-State Partnership (FSP) for Intercity Passenger Rail Program. The Federal Railroad Administration (FRA) solicited applications for the FSP – National Network Program in late 2025; it would be welcome news if these funds were targeted for accelerated development, as well.

For passenger rail advocates, accelerating the deployment of funds represents a significant opportunity. IIJA rail programs support a wide range of improvements that directly benefit riders, including grade‑crossing eliminations, signaling upgrades, station upgrades, new equpment procurement, and capacity improvements, among others. These investments strengthen safety, reliability, and connectivity for communities of all sizes.

Expedited Application Timeline is Welcome News

Bloomberg Government reports that USDOT is considering giving CRISI applicants less than 60 days to prepare submissions for fiscal 2025 and 2026 funding rounds — a compressed timeline could help the department hit its September target.

While Bloomberg raised the possibility of a condensed application period leading to mistakes, Rail Passengers applauds this effort by the USDOT to accelerate the delivery of funds to rail projects. Consistent federal investment—with an emphasis on consistent—is the best way to ensure that public infrastructure funds are well spent. Eligible entities—including states, regional transportation authorities, interstate rail compacts, Amtrak, tribes, and freight railroads—have had multiple years and multiple rounds of applications to develop a pipeline of rail projects. Our association believes there is an ample pool of quality projects awaiting funding.

Moreover, this would be a welcome change in strategy from the Trump Administration, which has slowed down the delivery of federal funding to critical rail projects over concern about the role of “DEI” in project selection and implementation. These projects include Amtrak’s Hudson River Tunnel Project, MTA’s 2nd Avenue Extension, CTA’s Red Line Extension, and the CTA’s Red and Purple Modernization Program. That doesn't include scores of other critical rail projects where disbursement of federal funds was slowed to give Trump Administration officials time to review the terms of agreements crafted under the Biden Administration.

Next Steps

Ultimately, it’s good when political candidates are excited to point to government investment in rail projects. Of course, those same politicians need to actually vote for the infrastructure bills that provide this funding.

The good news is: Congress has an opportunity to extend these programs this year. We hope voters are watching.