The State of Alaska owns and operates Alaska Railroad Corporation (ARRC).  For more information see our Alaska Railroad page.   While the railroad does not receive operating subsidies from the federal government, both the Federal Railroad Administration (FRA) and Federal Transit Administration administer capital grants that fund specific rail improvement projects as identified by Congress in annual appropriations or multi-year authorizations.

Funding from FRA since 1996:

Fiscal Year	Funding ($ millions)
1996	10.0
1997	10.0
1998	26.9
1999	57.6
2000	21.9
2001	32.1
2002	30.0
2003	39.5
2004	33.8
2005	48.8
2006	27.9
2007	16.0

Some of the specific projects funded are:

Elmendorf Air Force Base : ARRC is relocating its route through Elmendorf Air Force Base and Fort Richardson Army Base, away from landing clear zone and ammunition storage areas, to improve track efficiency and safety while increasing train speeds from 25 miles per hour to 59 miles per hour.

Fort Wainwright Rail Realignment : AARC, in cooperation with the U.S. Army, is planning the realignment of tracks through Fort Wainwright.  Proposed new alignments will remove existing track from residential areas (closing numerous at-grade crossings), move the railroads away from the Fort's airport runway, and better position rail facilities to serve the Army's loading docks.

Northern Rail Extension: AARC is proposing to construct and operate a new 80-mile railroad between the North Pole and Delta Junction in northern Alaska.  Current funding is limited to identifying and analyzing feasible alignment alternatives, completing preliminary designs for alternatives, and estimating construction costs.