Passenger Rail Expansion in the Infrastructure Investment and Jobs Act (IIJA)

Passenger Rail Expansion in the Infrastructure Investment and Jobs Act (IIJA)

Updated February 10, 2022
Passenger Rail Expansion in the Infrastructure Investment and
Jobs Act (IIJA)
On November 15, 2021, the President signed into law the
structures the grant solicitation, this could potentially allow
Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58).
it to commit most or all of the $36 billion in supplemental
The law 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 retains or alters many programs authorized
in the previous authorization act, the Fixing America’s
Even discounting projects on the NEC, there are a number
of large projects currently under way that might be eligible
Surface Transportation Act of 2015 (FAST Act; P.L. 114-
under the program, including the California High Speed
94). Besides setting authorized funding levels subject to the
Rail project.
availability of future appropriations, it directly appropriates
$550 billion in additional funds, including $66 billion for
Restoration and Enhancement Grant
rail, to be made available to recipients in (usually equal)
Program
portions on a yearly basis through FY2026. Of that $66
The Restoration and Enhancement grant program was
billion, barring any future rescissions, at least $18 billion
created in the FAST Act and was reauthorized with few
will be available for costs directly related to expanding
changes in Section 22304 of IIJA. The program differs from
passenger service to new corridors, in addition to funds that
other rail grant programs in that funds may be used to cover
may be made available through other multimodal programs.
operating (as opposed to only capital) expenses for the first
several years, in order to defray the costs ordinarily borne
Unless otherwise noted, rail grant programs are to be
by states under federal law. IIJA expands the use of grant
administered by the Federal Railroad Administration
funds for that purpose; whereas prior law allowed the
(FRA), part of the Department of Transportation (DOT).
federal government to pay 80% of the cost of operating a
Federal-State Partnership for Intercity
new route in the first year, declining to 40% in the third
Passenger Rail Program
year, IIJA allows federal funds to cover a share that
declines from 90% to 30% over six years. This change
Section 22307 of IIJA makes substantial changes to the
could further lessen the near-term cost of a new route for
Federal-State Partnership for State of Good Repair program
state governments and allow more time for state sponsors to
first authorized by the FAST Act. Renamed the Federal-
generate ridership and identify sources of state funding.
State Partnership for Intercity Passenger Rail program, it
constitutes the bulk of funding available for implementing
The program was originally intended to support reactivation
new passenger rail routes. While the original program
of routes previously served by Amtrak, such as the New
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 features
routes served by Amtrak prior to 2015 are to be given
broader eligibility in terms of project types and selection
priority under IIJA, so are routes “that would enhance
criteria.
connectivity and geographic coverage of the existing
national network of intercity rail passenger service.” This
As enacted, the law appropriates $36 billion for the
suggests that a route that has never received Amtrak service
program, of which no more than $24 billion may be
would still be eligible for funding under the program, and
awarded to projects on the NEC. Accordingly, at least $12
would be entitled to receive priority in the selection process
billion would be available for off-NEC network expansion.
if it connects to the current network.
The law also authorizes $7.5 billion for the program
contingent on future appropriations, of which $3.4 billion to
The law’s supplemental appropriations include $250
$4.1 billion would be available for network expansion, with
million for the program, to be withheld from amounts
the remainder reserved for projects on the NEC.
appropriated for Amtrak National Network Grants as
described below. The law also authorizes $250 million for
For projects not located on the NEC, the new program
the program contingent on future appropriations.
prioritizes those for which Amtrak is not the sole applicant,
and that are consistent with a corridor inventory prepared
Amtrak National Network Grants for
under the Corridor Identification and Development Program
Corridor Development
described below.
The law increases annual funding for National Network
The revised program allows the Secretary of Transportation
grants, which would be available for Amtrak’s share of
to issue letters of intent committing future appropriations to
eligible costs associated with new and existing routes off
selected applicants, and/or to enter into phased funding
the NEC, after certain set-asides (including $250 million for
agreements for larger projects. Depending on how DOT
Restoration and Enhancement grants as described above).
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Passenger Rail Expansion in the Infrastructure Investment and Jobs Act (IIJA)
Under Section 22101(h) of IIJA, Amtrak is permitted to use
Improvement (CRISI) grant program, for which the law
up to 10% of National Network appropriations for the
appropriates a total of $5 billion, and also authorizes $5
purposes of “corridor development,” including the payment
billion subject to future appropriations, over five years. The
of operating expenses in the same decreasing shares
program has broad eligibility for use in a wide variety of
permitted under Restoration and Enhancement. Of $16
passenger rail projects. Historically, however, CRISI funds
billion directly appropriated for National Network grants,
have gone mainly to projects that benefit freight railroads.
up to $1.6 billion could therefore be made available for
Similarly, Section 22305 of IIJA creates a new program
corridor development, as well as up to $1.3 billion of the
designed to fund road-rail crossing grade separation
nearly $13 billion authorized but contingent on future
projects, with $3 billion in appropriations. Grade separation
appropriations. Funds set aside for corridor development
projects may benefit passenger rail corridors, but this is not
would be available only for corridors selected as part of the
the program’s primary intended purpose; FRA may
Interstate Compacts program described below.
prioritize other benefits when selecting projects to receive
Amtrak’s FY2022 legislative report and grant request
grants.
proposed a more expansive corridor development
program—separate from Amtrak’s annual grants—that
Other DOT Programs
could be used to cover capital projects in addition to 100%
Sections 21201 and 21202 codify two National
of operating costs for the first few years of a new or
Infrastructure Investments programs, to be administered by
expanded service. The measure signed into law is
the Office of the Secretary of Transportation. The programs
considerably pared back by comparison.
received a total of $12.5 billion in supplemental
appropriations split between “national” and “local” project
Interstate Compact Program
assistance (similar to the RAISE program, formerly known
Section 22306 of IIJA creates a new program to provide
as TIGER or BUILD). Another $17.5 billion is authorized,
financial support for interstate compacts formed to plan,
pending future appropriations. Passenger rail projects
oversee, or otherwise advance the creation of new intercity
remain an eligible use of these funds, although Amtrak
passenger rail routes. Up to 10 compacts among two or
would be allowed to apply only in partnership with states,
more states are eligible to be selected for a grant of up to $1
transit agencies, or other eligible applicants. Since these are
million per year; the appropriations are provided by a $3
multimodal programs, passenger rail projects would be
million annual set-aside from Amtrak National Network
competing with freight rail, highway, and port projects for
grant funds.
program dollars.
Grants to interstate compacts would mainly be available for
Intercity passenger rail corridors that also host (or plan to
planning and administration, not construction of
host) commuter rail service may also be eligible to apply
infrastructure or operation of services. New routes
for the Capital Investment Grant (CIG, or New Starts)
advanced under an interstate compact are eligible to receive
program administered by the Federal Transit
funds set aside from Amtrak National Network
Administration. This program does not involve an annual
appropriations for corridor development. Pursuant to the
solicitation for applications. Rather, projects advance
Amtrak Reform and Accountability Act of 1997 (P.L. 105-
through phases as they meet certain milestones and
134), interstate compacts concerning passenger rail service
demonstrate the ability to provide certain benefits. The law
do not require congressional approval.
appropriates $8 billion for CIG projects, and authorizes $15
billion contingent upon future appropriations, with some
Corridor Identification and
funding already committed to previously approved projects.
Development Program
Section 22308 directs the Secretary of Transportation to
Changes to the State-Supported Route
solicit proposals for the development of intercity passenger
Cost Allocation Methodology
rail corridors from eligible entities. Having selected
Section 209 of the Passenger Rail Investment and
proposals for further support, the Secretary is then directed
Improvement Act of 2008 (P.L. 110-432, Div. B) required
to work with the applicants to determine the level of
the adoption of a uniform cost allocation policy for state-
financial support necessary to implement the proposals,
supported Amtrak routes (i.e., those less than 750 miles
support the completion of service development plans,
long and located off the NEC). Among other stipulations,
identify a “pipeline” of individual capital projects required
the methodology requires all operating shortfalls to be
for service initiation, and carry out other functions. Projects
covered by state funds, not by direct federal support to
identified in a service development plan and corridor
Amtrak. Section 22211 of IIJA requires a revised policy to
inventory under this program would be given priority over
be issued by March 31, 2022, and implemented no later
other projects not located on the NEC when applying for
than the end of FY2023. While this does not make any new
Federal-State Partnership funds. On February 7, 2022, FRA
funding directly available, some states may be less hesitant
published a notice in the Federal Register seeking
to sponsor new intercity passenger rail service if the revised
comments on the new program and “how it can best serve
policy lessens states’ obligations to cover future operating
stakeholders and the public in facilitating the development
costs.
of intercity passenger rail corridors.”
Other FRA Programs
Ben Goldman, Analyst in Transportation Policy
Intercity passenger rail projects remain eligible under the
IF11920
reauthorized Consolidated Rail Infrastructure and Safety
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Passenger Rail Expansion in the Infrastructure Investment and Jobs Act (IIJA)

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https://crsreports.congress.gov | IF11920 · VERSION 2 · UPDATED