Discouraging News for Freight Rail

July 29, 2021

The initial information about the so-called bi-partisan infrastructure bill is not too encouraging for freight rail. According to a release dated July 29, Railway Age indicates that of the total $66 billion for passenger and freight rail, here is how it would be distributed:

  • $22 billion would be provided as grants to Amtrak;
  • $24 billion as federal-state partnership grants for Northeast Corridor modernization;
  • $12 billion for partnership grants for intercity rail service, including high speed rail;
  • $5 billion for rail improvement and safety grants; and
  • $3 billion for grade crossing safety improvements.

Very Little Financial Support for Freight Rail, Despite Its Role in Supporting the Nation’s Economy

So, once again, very little for freight rail that supports the Nation’s economy, but many billions to support passenger rail that has never to our knowledge been self-supporting. It is truly unfortunate so much money will be inefficiently spent and in some cases outright wasted on passenger rail programs that are “hoped to” move people out of their cars.

We have to wonder why America does not support its industry to the degree needed to help our economy compete in the international arena, which we must do to have jobs and generate the tax revenue that is so badly needed.

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