FRA Awards $5.3 Billion in Rail Grants, Tapping Funds Freed by California High-Speed Rail Cuts

The Federal Railroad Administration announced $5.3 billion in rail grants spanning 23 states on August 14, 2026, with a portion of the funding drawn from money previously earmarked for California's high-speed rail project, after the Trump administration canceled federal funding for it earlier this year.

Nearly $3 billion of the package will go to Amtrak, funding the purchase of 43 new trainsets and the overhaul of 41 locomotives serving Midwest and Pacific-area routes. The remaining roughly $2.3 billion is spread across 41 separate safety and infrastructure projects nationwide, including the closure of more than 30 highway-rail grade crossings and upgrades to more than 1,000 others, according to the Department of Transportation.

That funding cut freed up part of the money now being redirected through the National Railroad Partnership Program. Transportation Secretary Sean Duffy framed the announcement, made in Cincinnati, as redirecting funds from what he called California's "train to nowhere" toward projects the department says are more immediately deliverable.

Grade-crossing safety has been a persistent focus for FRA funding rounds, and officials said the money will accelerate crossing closures and signal upgrades that have been backlogged in several states, while Amtrak's fleet allocation is expected to support service reliability on routes facing equipment shortages.