September 9, 2021
Passenger Rail Expansion in the Senate Infrastructure Bill
On August 10, 2021, the Senate passed an amended version
structures the grant solicitation, this could potentially allow
of H.R. 3684, the Infrastructure Investment and Jobs Act.
it to commit most or all of the $36 billion in supplemental
The bill contains a five-year reauthorization of surface
appropriations such that funds would be disbursed over a
transportation programs, including those for freight and
multiyear period to a single cohort of selected projects.
passenger rail. It would retain or alter many programs
Even discounting projects on the NEC, there are a number
authorized in the previous authorization act, the Fixing
America’s Surface Trans
of large projects currently under way that might be eligible
portation Act of 2015 (FAST Act;
under the program, including the California High Speed
P.L. 114-94). Besides setting authorized funding levels
Rail project.
subject to the availability of future appropriations, it would
directly appropriate $550 billion in additional funds,
Restoration and Enhancement Grant
including $66 billion for rail, to be made available to
Program
recipients in (usually equal) portions on a yearly basis
The Restoration and Enhancement grant program was
through FY2026. Of that $66 billion, barring any future
created in the FAST Act and would be reauthorized with
rescissions, at least $18 billion would be available for costs
few changes in Section 22304 of the Senate bill. The
directly related to expanding passenger service to new
program differs from other rail grant programs in that funds
corridors, in addition to funds that may be made available
may be used to cover operating (as opposed to only capital)
through other multimodal programs.
expenses for the first several years, in order to defray the
Unless otherwise noted, rail grant programs are to be
costs ordinarily borne by states under federal law. The
administered by the Federal Railroad Administration
Senate bill would expand the use of grant funds for that
(FRA), part of the Department of Transportation (DOT).
purpose; whereas current law allows the federal
government to pay 80% of the cost of operating a new route
Federal-State Partnership for Intercity
in the first year, declining to 40% in the third year, the bill
Passenger Rail Program
would allow federal funds to cover a share that declines
Section 22307 would make substantial changes to the
from 90% to 30% over six years. This change would lessen
Federal-State Partnership for State of Good Repair program
the near-term cost of a new route for state governments and
first authorized by the FAST Act. Renamed the Federal-
allow more time for state sponsors to generate ridership and
State Partnership for Intercity Passenger Rail program, it
identify sources of state funding.
would constitute the bulk of funding available for
The program was originally intended to support reactivation
implementing new passenger rail routes. While the original
of routes previously served by Amtrak, such as the New
program prioritized rehabilitation or replacement of aging
Orleans-Mobile corridor that has been without Amtrak
infrastructure on the Northeast Corridor (NEC) between
service since 2005. While projects to restore service over
Boston and Washington, the revised program would have
routes served by Amtrak prior to 2015 are to be given
broader eligibility in terms of project types and selection
priority under H.R. 3684, so are routes “that would enhance
criteria.
connectivity and geographic coverage of the existing
As amended by the Senate, the bill would appropriate $36
national network of intercity rail passenger service.” This
billion for the program, of which no more than $24 billion
suggests that a route that has received no intercity rail
could be awarded to projects on the NEC. Accordingly, at
service since before the creation of Amtrak in 1970 would
least $12 billion would be available for off-NEC network
still be eligible for funding under the program, and would
expansion. The bill would also authorize $7.5 billion for the
be entitled to receive priority in the selection process if it
program contingent on future appropriations, of which $3.4
connects to the current network.
billion to $4.1 billion would be available for network
The bill’s supplemental appropriations include $250 million
expansion, with the remainder reserved for projects on the
for the program, to be withheld from amounts appropriated
NEC.
for Amtrak National Network Grants as described below.
For projects not located on the NEC, the bill would
The bill would also authorize $250 million for the program
prioritize those for which Amtrak is not the sole applicant,
contingent on future appropriations.
and that are consistent with a corridor inventory prepared
under the Corridor Identification and Development Program
Amtrak National Network Grants for
described below.
Corridor Development
The bill would increase annual funding for National
The program would allow the Secretary of Transportation
Network grants, which would be available for Amtrak’s
to issue letters of intent committing future appropriations to
share of eligible costs associated with new and existing
selected applicants, and/or to enter into phased funding
routes off the NEC, after certain set-asides (including $250
agreements for larger projects. Depending on how DOT
million for Restoration and Enhancement grants as
https://crsreports.congress.gov
Passenger Rail Expansion in the Senate Infrastructure Bill
described above). Under Section 22101(h), Amtrak would
five years. The program has broad eligibility for use in a
be permitted to use up to 10% of National Network
wide variety of passenger rail projects. Historically,
appropriations for the purposes of “corridor development,”
however, CRISI funds have gone mainly to projects that
including the payment of operating expenses in the same
benefit freight railroads.
decreasing shares permitted under Restoration and
Similarly, Section 22305 would create a new program
Enhancement. Of $16 billion directly appropriated for
designed to fund road-rail crossing grade separation
National Network grants, up to $1.6 billion would therefore
projects, with $3 billion in appropriations. Grade separation
be available for corridor development, as well as up to $1.3
projects may benefit passenger rail corridors, but this is not
billion of the nearly $13 billion authorized but contingent
the program’s primary intended purpose; FRA may
on future appropriations. Funds set aside for corridor
prioritize other benefits when selecting projects to receive
development would be available only for corridors selected
grants.
as part of the Interstate Compacts program described below.
Amtrak’s FY2022 legislative report and grant request
Other DOT Programs
proposed a more expansive corridor development
Sections 21201 and 21202 would codify two National
program—separate from Amtrak’s annual grants—that
Infrastructure Investments programs, to be administered by
could be used to cover capital projects in addition to 100%
the Office of the Secretary of Transportation. The programs
of operating costs for the first few years of a new or
would receive a total of $12.5 billion in supplemental
expanded service. The measure passed by the Senate is
appropriations split between “national” and “local” project
considerably pared back by comparison.
assistance (similar to the RAISE program, formerly known
as TIGER or BUILD). Another $17.5 billion would be
Interstate Compact Program
authorized, pending future appropriations. Passenger rail
Section 22306 would create a new program to provide
projects would remain an eligible use of these funds,
financial support for interstate compacts formed to plan,
although Amtrak would be allowed to apply only in
oversee, or otherwise advance the creation of new intercity
partnership with states, transit agencies, or other eligible
passenger rail routes. Up to 10 compacts among two or
applicants. Since these are multimodal programs, passenger
more states would be eligible to be selected for a grant of
rail projects would be competing with freight rail, highway,
up to $1 million per year; the appropriations are provided
and port projects for program dollars.
by a $3 million annual set-aside from Amtrak National
Intercity passenger rail corridors that also host (or plan to
Network grant funds.
host) commuter rail service may also be eligible to apply
Grants to interstate compacts would mainly be available for
for the Capital Investment Grant (CIG, or New Starts)
planning and administration, not construction of
program administered by the Federal Transit
infrastructure or operation of services. New routes
Administration. This program does not involve an annual
advanced under an interstate compact are eligible to receive
solicitation for applications. Rather, projects advance
funds set aside from Amtrak National Network
through phases as they meet certain milestones and
appropriations for corridor development. Pursuant to the
demonstrate the ability to provide certain benefits. The
Amtrak Reform and Accountability Act of 1997 (P.L. 105-
Senate bill would appropriate $8 billion for CIG projects,
134), interstate compacts concerning passenger rail service
and would authorize $15 billion contingent upon future
do not require congressional approval.
appropriations, with some funding already committed to
previously approved projects.
Corridor Identification and
Development Program
Changes to the State-Supported Route
Section 22308 directs the Secretary of Transportation to
Cost Allocation Methodology
solicit proposals for the development of intercity passenger
Section 209 of the Passenger Rail Investment and
rail corridors from eligible entities. Having selected
Improvement Act of 2008 (P.L. 110-432, Div. B) required
proposals for further support, the Secretary would be
the adoption of a uniform cost allocation policy for state-
directed to work with the applicants to determine the level
supported Amtrak routes (i.e., those less than 750 miles
of financial support necessary to implement the proposals,
long and located off the NEC). Among other stipulations,
support the completion of service development plans,
the methodology requires all operating shortfalls to be
identify a “pipeline” of individual capital projects required
covered by state funds, not by direct federal support to
for service initiation, and carry out other functions. Projects
Amtrak. Section 22211 of the Senate bill would require a
identified in a service development plan and corridor
revised policy to be issued no later than the end of FY2023.
inventory under this program would be given priority over
While this would not make any new funding directly
other projects not located on the NEC when applying for
available, some states may be less hesitant to sponsor new
Federal-State Partnership funds.
intercity passenger rail service if the revised policy lessens
states’ obligations to cover future operating costs.
Other FRA Programs
Intercity passenger rail projects would remain eligible
Ben Goldman, Analyst in Transportation Policy
under the reauthorized Consolidated Rail Infrastructure and
Safety Improvement (CRISI) grant program, for which the
IF11920
bill would appropriate a total of $5 billion, and would also
authorize $5 billion subject to future appropriations, over
https://crsreports.congress.gov
Passenger Rail Expansion in the Senate Infrastructure Bill
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https://crsreports.congress.gov | IF11920 · VERSION 1 · NEW