The U.S. Federal Railroad Administration (FRA) has reissued a notice of funding opportunity worth more than $5 billion for its National Railroad Partnership Program, redirecting $2.4 billion previously allocated to the California High-Speed Rail project.
The revised program, which now combines fiscal year 2024 and 2025 funding rounds, emphasizes safety improvements at grade crossings and new passenger-rail amenities. Applications are due by January 7, 2026, and the FRA will provide technical assistance to applicants before the deadline.
The U.S. Department of Transportation framed the announcement as part of what it calls the “Trump Infrastructure Dividend,” aimed at redirecting federal dollars from projects deemed ineffective to rail infrastructure improvements nationwide.
“Under President Trump’s leadership, America is building again,” said Sean P. Duffy, U.S. Transportation Secretary. “Our new National Railroad Partnership Program will emphasize safety – our number one priority – without the radical Biden-Buttigieg DEI and green grant requirements.”
The FRA said safety remains the program’s top priority, with a strong focus on grade crossings, which account for more than 2,000 incidents and 200 fatalities each year. “The funding will help advance FRA’s top priority of making railroads safer,” said Drew Feeley, FRA Acting Administrator.
“These funds will significantly enhance and strengthen grade crossing safety, along with other eligible uses related to passenger rail capacity and reliability.”
The program will also support projects intended to improve the passenger experience. Eligible investments include station amenities such as mothers’ rooms, family restrooms, children’s play areas, and expanded waiting areas. According to the FRA, these additions are designed to make travel more accessible for families while modernizing intercity rail facilities.
California officials have challenged the decision to de-obligate $2.4 billion in federal funds from the state’s high-speed rail project. The California High-Speed Rail Authority argues that the redirection of funds is unlawful and has indicated it will pursue legal remedies. The FRA confirmed that the redirected money will be awarded to other projects under the National Railroad Partnership Program, shifting resources from one of the country’s largest infrastructure undertakings to a broader array of national priorities.
The FRA has already announced over $42 million in grants under the revised framework for rail safety improvements along the Brightline Florida corridor. These projects focus on grade-crossing upgrades, consistent with the new emphasis outlined in the notice of funding opportunity. Additional awards are expected once applications are reviewed following the January 2026 deadline.
Eligible applicants for the program include states, groups of states, interstate compacts, public agencies, political subdivisions, Amtrak (independently or in cooperation with states), federally recognized tribes, and combinations of these entities. The FRA stated that the funds can be used to reduce the state-of-good-repair backlog, improve operational performance, or advance projects that enhance passenger rail capacity and reliability.
The redistribution of funds away from California’s high-speed rail effort underscores the federal government’s decision to prioritize safety and incremental improvements over a single megaproject. By making billions available for competitive grants, the FRA intends to channel investments into projects that deliver measurable improvements in safety, reliability, and passenger service across multiple regions.
The outcome of the National Railroad Partnership Program is expected to shape U.S. passenger rail development for years to come. While California continues to defend its high-speed rail initiative, rail operators nationwide are preparing applications for a share of the funding, reflecting a shift in federal priorities toward projects with immediate and broad impacts on safety and service.
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