The US Federal Railroad Administration (FRA) launched a notice of funding opportunity (NOFO) for a USD 153 million grant for the improvement of inter-city rail passenger network under the Restoration and Enhancement (R&E) grant programme.
“The quality of our inter-city rail passenger 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. Safer, more frequent, and more accessible passenger rail services will expand travel and commuting options, creating newly efficient and sustainable opportunities to get around the country,” the U.S. Transportation Secretary Pete Buttigieg said.
Grant funding will assist with operating costs for eligible projects that will establish service on new routes, restore service on routes that formerly had inter-city passenger operations, and enhance service on existing routes. These passenger rail upgrades will complement the dozens of major rail projects that are underway across the country and improve the inter-city passenger rail network, thanks to President Biden’s Bipartisan Infrastructure Law.
The R&E programme 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. These 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 programme also encourages a modal shift to safe and environmentally friendly transportation options.
This funding represents the first round of R&E programme funding since the programme 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 Inter-city Passenger Rail programme and the Consolidated Rail Infrastructure and Safety Improvements programme. Taken together, these investments build on the Biden-Harris Administration’s generational investment in passenger and freight rail that will revitalise local economies, strengthen rail safety, and modernise the country’s rail network.
In December 2023, 10 inter-city rail projects were selected for a USD 8.2 billion grant available through the Federal State Partnership for Intercity Passenger Rail programme.
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