A quick update on the status of federal railway funding

Big change is certain. The outcome depends on what we do right now.

The recent news that the White House pressured Amtrak’s CEO to resign is another indicator that things are moving quickly, big changes are underway, and it is vital for us to make our voices heard. So a quick update on the status of federal railway policy and funding is in order.

Please help by sending a note to (and/or calling) your representatives. And please get your friends involved as well. This is an all-hands-on-deck moment. We need to apply pressure—and ask for meetings—at both the state and federal levels. In-person dialogue is the most powerful tool we have.

Here’s a quick overview of the issues currently in play.

FY 2025 Budget passed, but future funding uncertain

Congress recently extended FY2024 funding levels through September 30.  So, as of now, funds for railway programs in the Federal Railroad Administration (FRA) and the Federal Transit Administration (FTA) are safe.

However, reconciliation (i.e., a way to change the budget mid-year) is still in play, and across-the-board funding cuts are proposed. Congress is also working on the FY2026 budget, which begins on October 1.  It is safe to assume that the majority in Congress will push for lower funding levels.

Discretionary grants are still on hold

Railway-related grants remain on hold pending review for alignment with the President’s priorities. This includes funding for the Fed-State Partnership, CRISI, Amtrak’s operating budget, and the Corridor ID program.

Guidance (instructions) for conducting the project reviews was issued late last week.  Theoretically, the reviews can now begin.  However, the FRA department responsible for grants has been decimated by the rapid layoffs that are impacting all federal agencies. So it is unclear how quickly the project reviews can be completed.

Amtrak fleet replacement at risk

The coaches that operate on Amtrak’s rural-serving long-distance routes are in bad shape. The trains keep getting shorter as coaches become unrepairable. The replacement order must move forward soon to avoid route discontinuances. It is also key to developing a healthy supply chain.

Reauthorization is still being debated

IIJA, which includes the current surface transportation authorization, expires in 2026.  During this time of upheaval, we must stay focused on supporting the improvements that are vital to creating a vibrant, growing federal railway program.

As I often say, change happens when change happens

In other words, change is unpredictable and moves in many directions. Moments like this—moments of profound change—produce plenty of anxiety, but they also create new opportunities.

That’s why we need to push hard—right now—for the kind of change we want. The truth is that no one knows how the the upheaval in D.C. will play out. But it’s certain that we have real power to make a difference—if we choose to use it.

You can start by sending a note and calling your representatives today.