Federal Funding Drives Rail Infrastructure Growth
Thousands of miles of railroad right-of-way have been upgraded, new rail projects have commenced, and emerging technologies have been tested due to the Federal Railroad Administration’s Consolidated Rail Infrastructure and Safety Improvement (CRISI) program. This program, initiated seven years ago, has been a godsend for the rail industry, injecting substantial federal funding to support growth.
Billions in CRISI Grants Transform the Rail Industry
Since fiscal 2017, CRISI has distributed over $5.2 billion, greatly benefiting shortline and regional railroads. Small railroads received $2.6 billion for over 220 projects, accounting for more than 50% of the total program funding. In 2023 alone, the program allocated $2.4 billion, with $1.29 billion dedicated to shortline projects across 36 states.
A Godsend for Small Railroads
For family-owned railroads, CRISI has been a godsend, enabling bridge repairs and other upgrades that would have been financially out of reach. Large shortline companies have also benefited, using public funds to boost growth and improve infrastructure security.
CRISI Breaks the Investment Catch-22
Shortline railroads excel at drawing in business but face challenges with limited infrastructure funding. CRISI helps them overcome the dilemma of needing funds to attract carloads and needing carloads to secure funding, making railroads more competitive.
Insight from Industry Leader Chuck Baker
American Short Line and Regional Railroad Association President Chuck Baker praises CRISI’s impact. “Short lines hustle to gain new customers, yet struggle to find funds for major rehabilitation,” he explains. The 45G tax credit aids basic upkeep, but CRISI is crucial for larger projects, making it a true godsend.
Strong Federal Support Sustains CRISI
Policymakers have recognized CRISI’s value, ensuring its funding since its inception. Initially funded at $65 million in fiscal 2017, CRISI’s annual budget grew to $200–$300 million from 2018–2021, even during the pandemic.
Infrastructure Law Brings Transformational Funding
The 2021 Infrastructure Investment and Jobs Act doubled CRISI’s funding impact, guaranteeing $1 billion annually in advanced appropriations and enabling an additional $1 billion per year.
A Virtuous Cycle for Railroads and Communities
CRISI has built a positive cycle, says Baker, with short lines executing impactful projects that benefit both businesses and communities. This success fuels ongoing legislative support for the program, which he calls a godsend for shortline railroads.
Community Benefits and Visibility
Amy Krouse, vice president of communications for the association, notes that CRISI projects excite communities by revitalizing local railroads. This visibility underscores the program’s tangible benefits.
Looking Forward: Advocating for Future Funding
With new congressional representatives arriving in Washington, Baker says the association will renew its advocacy for fiscal 2025 funding. While the infrastructure bill currently secures CRISI funding through 2026, questions remain for fiscal 2027 and beyond.
The Push for Continued CRISI Funding
As Congress addresses future surface transportation reauthorization, Baker confirms that securing CRISI funding will be a top priority. For the rail industry, this program remains a godsend, enabling essential infrastructure improvements that drive national progress.
