New Jersey Opens FY27 Applications for $25 Million Rail Freight Assistance Program

The New Jersey Department of Transportation has opened applications for the FY2027 round of its Rail Freight Assistance Program (RFAP), offering up to $25 million to support capital improvements on the state's short line freight railroads.

Owners and operators of short line railroads with an existing use-and-maintenance agreement in New Jersey are eligible to apply through 9 October 2026. The program covers up to 90% of the estimated cost of qualifying projects, with sponsors responsible for the remainder, and applicants may submit no more than two applications per fiscal year.

NJDOT's Division of Local Aid, which administers the program, says priority will go to projects that strengthen freight connections to the state's port facilities, eliminate missing links in the freight network, and upgrade track to handle 286,000-pound railcars -- the heavy axle load now standard across much of North American freight rail.

Applicants must first secure an approved Eligibility Assessment Form through the state's System for Administering Grants Electronically (SAGE) before submitting a full application, also via SAGE.