DOT 25-08
Contact: Steve Kulm, Tel.: (202) 493-6024
Tuesday, February 19, 2008
New Grant Program Provides First-Ever Federal-State Funding Partnership to
Improve and Expand Intercity Passenger Rail Service
For the first time ever, states will be directly eligible for federal funding to
support intercity passenger rail service under a new grant program, U.S.
Secretary of Transportation Mary E. Peters announced today.
“We want to encourage and support the kind of state investments that are making
a difference for passenger rail services,” Peters said, noting that between 1996
and 2006, ridership on state-supported intercity routes grew by a robust 88
percent, vastly outpacing the 17 percent increase on all other routes combined.
Peters explained that the $30 million capital grant program is designed to
support state efforts to improve intercity passenger rail service and requires a
50-50 funding match like most other transportation investments. Projects that
demonstrate an on-time performance standard of 80 percent or greater, reduce
travel time, increase service frequency, or enhance service quality for
intercity rail passengers will receive favorable consideration for funding, she
said.
Eligible projects include, but are not limited to: upgrading existing track to
permit higher maximum operating speeds, adding or lengthening passing tracks to
increase rail line capacity, improving track switches and signaling systems to
advance reliability and safety, and purchasing new passenger rail cars to
enhance the travel experience, Peters said.
“Rail passengers demand improved service and quality and this grant program will
allow states to address these concerns,” said Federal Railroad Administrator
Joseph H. Boardman, highlighting that individual or multiple States working
together can submit applications.
Peters stressed that creation of a federal-state funding partnership was
specifically called for by the Bush Administration as part of its long standing
intercity passenger rail reform effort. The Administration believes states need
a larger role in deciding where and how intercity passenger rail is operated
while focusing federal investments on capital projects that produce long term
results.
The Federal Railroad Administration is administering this grant program and will
begin accepting applications on March 18, 2008, with the expectation that awards
will be made later this year. The full Notice of Funding Availability can be
found at www.fra.dot.gov.
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