USDOT opens $2B NOFO to enhance, modernize rail infrastructure nationwide

April 22, 2026

The U.S. Department of Transportation (USDOT) has unveiled a more than $2 billion Notice of Funding Opportunity (NOFO) determined to upgrade and modernize the nation’s rail infrastructure. Applications are due by June 22. 

The announcement covers the latest round of funding for the Federal Railroad Administration’s (FRA) Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program. CRISI provides funding to projects that center around enhancing passenger and freight rail, mitigating congestion and contributing to safer, connected, efficient, reliable and affordable transit options. 

The FRA has set aside a quarter of the funding – totaling $532.5 million – for projects located in rural areas. Eligible applicants include states, groups of states, interstate compacts, public agencies or publicly chartered authorities, political subdivisions, Amtrak or another qualifying rail carrier, Class 2 and 3 railroads, Indian Tribes, rail carriers, rail equipment manufacturers, the Transportation Research Board, non-profit labor organizations and university transportation centers engaged in rail-related research. 

The CRISI program supports a wide variety of potential capital projects. The following projects are eligible for funding: 

  • Deploying railroad safety technology. 
  • Capital projects as defined by the FRA. 
  • Capital projects identified as necessary to address congestion or safety challenges impacting rail service. 
  • Capital projects needed to reduce congestion and encourage ridership growth in intercity rail transportation along heavily traveled rail corridors. 
  • Highway-rail grade crossing improvement projects. 
  • Rail line relocation or improvement projects. 
  • Capital projects that improve short-line or regional railroad infrastructure. 
  • Preparing regional rail and corridor service development plans and corresponding environmental analyses. 
  • Projects needed to improve multimodal connections or facilitate service integration between rail service and other modes. 
  • Developing and implementing safety programs or institutes designed to improve rail safety. 
  • Developing and implementing measures to prevent trespassing and reduce associated injuries and fatalities. 
  • Research required to advance rail-related capital, operations or safety improvements. 
  • Workforce development and training activities. 
  • Research, development and testing to advance and facilitate innovative rail projects. 
  • Preparing emergency plans for communities through which hazardous materials are transported by rail. 
  • Rehabilitating, remanufacturing, procuring or overhauling locomotives that result in a reduction of emissions. 

While capital projects are the primary focus for the CRISI Program, it will also support non-capital projects expected to positively impact rail safety and research, development and testing needed to advance cutting-edge rail projects. 

Photo by 🇻🇳🇻🇳Nguyễn Tiến Thịnh 🇻🇳🇻🇳 from Pexels

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