Summary#
This bill, the American High-Speed Rail Act, makes many changes to federal programs that fund and guide high-speed and "higher-speed" passenger rail. It updates definitions (high-speed now means 186+ mph; higher-speed means more than 110 mph but less than 186 mph). It expands who can apply for corridor planning and development grants to include public agencies, private entities, and public-private consortia. The Secretary of Transportation may designate corridors, set performance-based safety rules that do not block network interoperability, and allow up to 100 percent federal share of net capital costs for some projects. The bill prioritizes projects that show at least 20 percent of costs from specified non-federal sources (like RRIF, TIFIA, state, local, private, or bordering-country funding) and says funds from RRIF or TIFIA used for eligible activities must be repaid from state, local, or private sources. The Secretary may award up to 20 percent of grants for "higher-speed" projects and may apply high-speed requirements where relevant.
The bill creates or changes several program rules: authorize multi-year funding for corridor planning, technology improvements, and corridor development; allows advance acquisition of right-of-way with required environmental reviews and certifications; directs the Secretary of State to provide Presidential permits for cross-border construction unless national security blocks them; and adds tax exclusions and grant rules related to rail carriers selling or leasing property used for projects. It also amends labor coverage: certain operators and providers working on federally funded rail infrastructure are treated as rail carriers for specific federal railroad statutes (Railroad Retirement Act, Railway Labor Act, Railroad Unemployment Insurance Act) while keeping limited exceptions for construction and certain contractors.
What it means for you#
- Public agencies, private firms, or consortia can apply for planning and development grants for high-speed and higher-speed passenger rail corridors.
- The federal government may fund a large share, even up to full net capital cost, for some projects, but the Department will prioritize projects that include at least 20 percent funding from specified non-federal sources.
- Communities near proposed corridors may be eligible for planning and transit-oriented development pilot funding.
- Rail carriers can sell, lease, or grant easements on real property to project recipients; grants and certain gains related to these transactions are excluded from gross income under the Internal Revenue Code as described in the bill.
- Entities that operate passenger rail or perform certain railroad work on federally funded infrastructure may be considered rail carriers for some federal railroad benefits and labor laws; construction contractors and some other employers have specified exceptions.
- Project sponsors may be allowed to acquire right-of-way before environmental reviews are complete if the Secretary verifies certain conditions; however, federal funding for acquisition requires completion of NEPA, Section 4(f), and Section 106 reviews, and acquired property may not be developed until reviews finish.
- Cross-border projects that need Presidential permits are to receive them from the Secretary of State unless national security concerns apply.
Expenses#
- High-speed rail corridor planning: $3,000,000,000 authorized for each fiscal year 2027 through 2031.
- High-speed rail technology improvements: $3,000,000,000 authorized for each fiscal year 2027 through 2031.
- High-speed rail corridor development: $35,000,000,000 authorized for each fiscal year 2027 through 2031.
- Transit-oriented development planning pilot (special consideration for high-speed rail projects): $20,000,000 authorized for each fiscal year 2027 through 2031.
- Restriction: Not more than 20 percent of total funds made available under sections 26101 and 26106 for a fiscal year may be spent on higher-speed passenger trains. The Secretary may also limit grants so no more than 20 percent of grants are for higher-speed rail projects.
- Federal share: The bill allows the federal share of net capital cost for a project to be up to 100 percent, while prioritizing projects with at least 20 percent of costs from specified financial sources. For funds derived from RRIF or TIFIA used for eligible activities or capital costs, the bill requires those funds to be repaid from state, local, or private sources.
Proponents' View#
No publicly available information.
Opponents' View#
No publicly available information.