Climate-Related Funding Opportunities for the Rail Industry

The following Federal funding sources may apply to rail projects to address climate-related issues. Note that not all funding sources may be listed here as new 

initiatives may become available after the publication of this chart. In addition, there are other FRA grant programs for rail development that may not be 

specifically focused on climate issues but are also available to rail stakeholders.

Last Updated November 2023

Program Type of 

Program

Administering 

Agency

Program Summary Eligible Applicants

Consolidated Rail 

Infrastructure and 

Safety 

Improvements 

(CRISI)

Discretionary DOT/FRA CRISI provides funding for a wide range of railroad 

improvement projects including those that: 

• Improve railroad safety, efficiency, and 

reliability

• Mitigate congestion at intercity passenger 

and freight bottlenecks

• Enhance multi-modal connections

• Lead to new or substantially improvement 

intercity passenger rail corridors

• States, Groups of States, Interstate Compacts

• Amtrak or another rail carriers that provide passenger 

rail

• Class II railroad or Class III railroads

• Federally recognized Indian Tribe

• Any rail carrier or rail equipment manufacturer in 

partnership with at least one of the aforementioned 

entities

• Transportation Research Board together with any 

entity with which it contracts in the development of 

rail-related research, including cooperative research 

programs

• University transportation center engaged in railrelated research 

• Non-profit labor organization representing a class or 

craft of employees of rail carriers or rail carrier 

contractors
Program Type of 

Program

Administering 

Agency

Program Summary Eligible Applicants

Federal-State 

Partnership (FSP) for 

Intercity Passenger 

Rail Program 

(Partnership for 

State of Good 

Repair)

Discretionary DOT/FRA This program provided funding for capital projects to 

repair, replace, or rehabilitate qualified railroad assets 

to reduce the state of good repair backlog and 

improve intercity passenger rail performance. Eligible

projects include those that:

• Replace, rehabilitate, or repair infrastructure, 

equipment, or a facility used for providing 

intercity passenger rail service to bring such 

assets into a state of good repair

• Improve intercity passenger rail service

performance, including reduced trip times, 

increased train frequencies, higher operating 

speeds, improved reliability, expanded 

capacity, reduced congestion, electrification, 

and other improvements. 

• Expand or establish new intercity passenger 

rail service. 

• The planning, environmental review, and final 

design of an eligible project or group of 

projects described above.

• A State (including the District of Columbia)

• A group of States

• An Interstate Compact

• A public agency or publicly chartered authority 

established by one or more States

• A political subdivision of a State

• Amtrak, acting on its own behalf or under a 

cooperative agreement with one or more States

• Any combination of the entities described above

Rail Vehicle 

Replacement 

Program

Discretionary DOT/FTA This program provides funding for replacement of rail 

rolling stock (revenue service, passenger carrying 

vehicles, or locomotives). Eligible projects must be 

reflected in an agency's Transit Asset Management 

(TAM) plan. 

State and local government authorities in urbanized areas 

(UZAs)

Multimodal Project 

Discretionary Grant 

(MPDG)

Discretionary DOT/OST The MPDG encompasses three funding opportunities: 

the National Infrastructure Project Assistance grants 

program (Mega), that Nationally Significant 

Multimodal Freight and Highway Projects grants 

program (INFRA), and the Rural Surface Transportation 

Grant program (Rural). Applicants may apply for one, 

two or three of these funding opportunities by 

submitting only one application. MPDG funds can be 

used towards highway and bridge, intercity passenger 

rail, railway-highway grade separation, wildlife 

crossing, public transportation, marine highway, 

freight and multimodal projects.

Varies based on whether applicant is pursuing Mega, 

INFRA, or Rural grant. All three programs are open to 

states, units of local government, and tribal governments, 

among other entities. Mega is specifically open to 

partnerships between Amtrak and public/tribal authorities. 
Program Type of 

Program

Administering 

Agency

Program Summary Eligible Applicants

Port Infrastructure 

Development 

Program (PIDP)

Discretionary DOT/MARAD The PIDP supports capital projects that will be used to 

improve the safety, efficiency, or reliability of the 

movement of goods through ports and intermodal 

connections to ports. 

• Port authority

• Commission or its subdivision or agent under existing 

authority 

• State or political subdivision of a State of local 

government

• An Indian Tribe

• A public agency or publicly chartered authority 

established by one or more States

• A special purpose district with a transportation 

function 

• A multistate or multijurisdictional group of entities

• Lead entity described above jointly with a private 

entity or group of private entities (including the 

owners or operators of a facility, or collection of 

facilities, at a port)

Capital Investment 

Grants Program

Discretionary DOT/FTA This grant program funds transit capital investments, 

including heavy rail, commuter rail, light rail, 

streetcars, and bus rapid transit. Transit agencies 

seeking CIG funding are required to complete a series 

of steps over several years: 

• For New Starts and Core Capacity projects, 

agencies must complete two phases in advance of 

receipt of a construction grant agreement: Project 

Development and Engineering.

• For Small Starts projects, the law requires 

completion of one phase in advance of receipt of 

a construction grant agreement: Project 

Development.

State and local government agencies, including transit 

agencies
Program Type of 

Program

Administering 

Agency

Program Summary Eligible Applicants

Diesel Emissions 

Reduction Act 

(DERA) Program

Discretionary 

(National and 

State) 

EPA DERA provides funding for emissions reductions 

solutions such as retrofit technologies, alternative 

fuels and zero emissions engines, idle reduction 

technologies for diesel vehicles, engines, and 

equipment. The DERA program generally targets older, 

dirtier diesel engines that lack modern emission 

control systems in areas of poor air quality.

Eligible entities include regional, state, or local agencies; 

tribal governments (or intertribal consortia) and native 

villages; or port authorities, which have jurisdiction over 

transportation or air quality, and nonprofit organizations 

or institutions that: a) represent or provide pollution 

reduction or educational services to diesel fleets or b) 

have, as their principal purpose, the promotion of 

transportation or air quality. 

Although private fleet owners are not eligible to apply 

directly to EPA for DERA funding, both public and private 

fleets can benefit from the programs implemented by 

DERA national grant recipients.

Rebuilding American 

Infrastructure with 

Sustainability and 

Equity (RAISE) 

Grants

Discretionary DOT/OST RAISE grants are intended for investments in surface 

transportation, including road, rail, transit, and port 

projects, that will have a significant local or regional 

impact. The eligibility requirements of RAISE allow 

project sponsors at the State and local levels to obtain 

funding for multi-modal, multi-jurisdictional projects 

that are more difficult to support through traditional 

DOT programs. 

RAISE was previously known as the Better Utilizing 

Investments to Leverage Development (BUILD) and 

Transportation Investment Generating Economic 

Recovery (TIGER) Discretionary Grants.

• States and the District of Columbia

• Any territory or possession of the United States

• A unit of local government

• A public agency or publicly chartered authority 

established by one or more States

• A special purpose district or public authority with a 

transportation function, including a port authority

• A federally recognized Indian Tribe or a consortium of 

such Indian Tribes

• A transit agency

• A multi-State or multijurisdictional group of entities 

that are separately eligible
Program Type of 

Program

Administering 

Agency

Program Summary Eligible Applicants

Railroad 

Rehabilitation & 

Improvement 

Financing (RRIF) - 

RRIF Express Pilot 

Program

Credit 

assistance

DOT/OST Under RRIF, DOT can provide direct loans and loan 

guarantees to finance development of railroad 

infrastructure. 

The funding may be used to:

• Acquire, improve, or rehabilitate intermodal or 

rail equipment or facilities, including track, 

components of track, bridges, yards, buildings and 

shops, and including the installation of positive 

train control systems;

• Develop or establish new intermodal or railroad 

facilities;

• Reimburse planning and design expenses relating 

to activities listed above;

• Refinance outstanding debt incurred for the

purposes listed above; and

• Finance transit-oriented development

Eligible borrowers include railroads, state and local 

governments, government-sponsored authorities and 

corporations, limited option freight shippers that intend to 

construct a new rail connection, and joint ventures that 

include at least one of the preceding.

Transportation 

Infrastructure 

Finance and 

Innovation Act 

(TIFIA)

Credit 

assistance

DOT/OST TIFIA provides credit assistance in the form of direct 

loans, loan guarantees, and standby lines of credit 

(rather than grants) to projects of national or regional 

significance, including: 

• Highways and Bridges

• Intelligent Transportation Systems

• Intermodal Connectors

• Transit Vehicles and Facilities

• Intercity Buses and Facilities

• Freight Transfer Facilities

• Pedestrian Bicycle Infrastructure Networks

• Transit-Oriented Development

• Rural Infrastructure Projects

• Passenger Rail Vehicles and Facilities

• Surface Transportation Elements of Port 

Projects 

• Airports

Eligible applicants include state and local governments, 

transit agencies, railroad companies, special authorities, 

special districts, and private entities.
Program Type of 

Program

Administering 

Agency

Program Summary Eligible Applicants

Congestion 

Mitigation and Air 

Quality (CMAQ) 

Improvement 

Program

Formula DOT/FHWA The CMAQ Program provides funding to States for 

transportation projects designed to reduce traffic 

congestion and improve air quality, particularly in 

areas of the country that do not attain national air 

quality standards.

State and local transportation departments, metropolitan 

planning organizations, and transit agencies

Promoting Resilient 

Operations for 

Transformative, 

Efficient, and CostSaving 

Transportation 

(PROTECT) Formula 

Program

Formula DOT/FHWA The PROTECT Formula Program was established to 

help make surface transportation more resilient to 

natural hazards, including climate change, sea level 

rise, flooding, extreme weather events, and other 

natural disasters. Eligible activities include planning 

activities, resilience improvements, community 

resilience and evacuation routes, and at-risk costal 

infrastructure. Funding may go towards development 

phase activities, preliminary engineering and design 

work, and construction. 

A State may only use its PROTECT Formula Program funds 

for eligible activities and eligible costs associated with— 

• highway projects eligible under Title 23, U.S.C.; 

• public transportation facilities or services eligible 

under chapter 53 of title 49, U.S.C.; or 

• port facilities, including facilities that connect 

ports with other modes of transportation, 

improve the efficiency of evacuations and disaster 

relief, or aid transportation. [§ 11405; 23 U.S.C. 

176(c)(3)(B)]

PROTECT treats every project funded under the program 

as if it were located on a Federal-aid highway. 

Promoting Resilient 

Operations for 

Transformative, 

Efficient, and CostSaving 

Transportation 

(PROTECT) 

Discretionary Grant 

Program

Discretionary DOT/FHWA PROTECT discretionary grants will include resilience 

improvement grants, community resilience and 

evacuation route grants, and at-risk coastal 

infrastructure grants. 

Highway, transit, and certain port projects are eligible.

State (or political subdivision of a State), metropolitan 

planning organization, local government, special purpose 

district or public authority with a transportation function, 

Tribe, Federal land management agency (applying jointly 

with State(s)); Different eligibilities apply for at-risk coastal 

infrastructure grants. 
Program Type of 

Program

Administering 

Agency

Program Summary Eligible Applicants

Bridge Investment 

Program (BIP)

Discretionary DOT/FHWA The BIP provides grants to improve bridge condition 

and the safety, efficiency, and reliability of the 

movement of people and freight over bridges. Projects 

eligible for funding under BIP include– 

• a project (or bundle of projects) to replace, 

rehabilitate, preserve, or protect a bridge on the 

National Bridge Inventory (NBI); and

• a project to replace or rehabilitate culverts on the 

NBI for the purpose of improving flood control 

and improved habitat connectivity for aquatic 

species. [§11118(a); 23 U.S.C. 124(a)(1)]

• A State or a group of States.

• A metropolitan planning organization that serves an 

urbanized area (as designated by the Bureau of the

Census) with a population of over 200,000.

• A unit of local government or a group of local 

governments.

• A political subdivision of a State or local government.

• A special purpose district or public authority with a 

transportation function.

• An FLMA.

• A Tribal government or a consortium of Tribal 

governments.

• A multistate or multijurisdictional group of entities 

described above.

Higher Blends 

Infrastructure 

Inventive Program 

(HBIIP)

Discretionary UDSA The purpose of the HBIIP is to increase significantly 

the sales and use of higher blends of ethanol and 

biodiesel by expanding the infrastructure for 

renewable fuels derived from U.S. agricultural 

products.

To be eligible for this program, a project’s sole 

purpose must be for the installation, and/or 

retrofitting, and/or otherwise upgrading of fuel 

dispensers/ pumps, related/attached equipment, 

underground storage tank (UST) system components, 

and other infrastructure required at a location to 

ensure the environmentally safe availability of fuel 

containing ethanol blends greater than 10 percent or 

fuel containing biodiesel blends greater than 5 

percent. 

Owners of transportation fueling and fuel distribution 

facilities located in the U.S. and its territories may apply for 

this program. Eligible entities would include: fueling 

stations, convenience stores, hypermarket retailer fueling 

stations, fleet facilities (including automotive, freight, rail 

and marine), and similar entities with equivalent capital 

investments, as well as fuel/biodiesel terminal operations, 

midstream operations, and heating oil distribution facilities 

or equivalent entities.

Title 17 Innovative 

Energy Loan 

Guarantee Program

Loan 

guarantee

DOE Title 17 helps eliminate gaps in commercial financing 

for energy projects in the U.S. that utilize innovative 

technology to reduce, avoid, or sequester greenhouse 

gas emissions. Eligible projects must:

DOE’s Loan Program Office can support a range of 

borrowers, including private project developers, investorowned utilities, publicly-owned utilities and nonprofits.
Program Type of 

Program

Administering 

Agency

Program Summary Eligible Applicants

• Employ new or significantly improved technology 

as compared to commercial technology in service 

in the U.S. at the time the guarantee is issued.

• Avoid, reduce or sequester greenhouse gases. 

• Be located in the U.S. Foreign ownership or 

sponsorship of the projects is permissible as long 

as the project is located in one of the fifty states, 

the District of Columbia, or a U.S. territory. 

• Have a reasonable prospect of repayment. 

Regional Clean 

Hydrogen Hubs

(H2Hubs)

Discretionary, 

Cooperative 

Agreement

DOE H2Hubs will help establish six to 10 regional clean 

hydrogen hubs across the U.S.

Funding may be used for projects that demonstrate 

the production, processing, delivery, storage, and enduse of, clean hydrogen through regional clean 

hydrogen hubs, which are networks of clean hydrogen 

producers, potential clean hydrogen consumers, and 

connective infrastructure located in close proximity.

Technology Developers, Industry, Utilities, Universities, 

National Laboratories, Engineering and Construction firms, 

State and Local Governments, Tribal, Environmental 

Groups, and Community Based Organizations.

EPA Port Emissions 

Programs 

Discretionary 

and Rebates

EPA Projects to: (1) To purchase or install zero-emission 

port equipment or technology for use at, or to directly 

serve, one or more ports; (2) To conduct any relevant 

planning or permitting in connection with the 

purchase or installation of such zero-emission port 

equipment or technology; 

and (3) To develop qualified climate action plans.

(1) A port authority; (2) A state, regional, local, or Tribal 

agency that has jurisdiction over a port authority or a port; 

(3) An air pollution control agency; or (4) A private entity 

(including a nonprofit organization) that applies for a grant 

in partnership with an entity described in (1)-(3) and owns, 

operates, or uses the facilities, cargo-handling equipment, 

transportation equipment, or related technology of a port. 

The Clean Air Act defines “state” to mean a state, the 

District of Columbia, the Commonwealth of Puerto Rico, 

the Virgin Islands, Guam, and American Samoa and 

includes the Commonwealth of the Northern Mariana 

Islands.
Program Type of 

Program

Administering 

Agency

Program Summary Eligible Applicants

EPA Climate 

Pollution Reduction 

Grants (CPRG) 

Program

Discretionary

and Formula

EPA Non-competitive Phase I planning grants provides 

flexible support to states, local governments, tribes, 

and territories. Phase I grant recipients must use the 

funding to design Priority Climate Action Plans (PCAPs)

that incorporate a variety of measures to reduce GHG 

emissions. 

Competitive Phase II implementation grants provide 

funding to eligible applicants to implement GHG 

reduction programs, policies, projects, and measures 

identified in a PCAP.

Eligible applicants for the CPRG implementation grants 

competitions are limited to lead organizations for CPRG 

planning grants and other executive branch-level agencies, 

offices, and departments in states, D.C., Puerto Rico, 

municipalities, tribes, tribal consortia, territories, and 

groups of such entities applying for funding to implement 

measures contained in one or more applicable PCAP

developed with funding from a CPRG planning grant.

Environmental and 

Climate Justice 

Community Change 

Grants

Discretionary, 

Cooperative 

Agreements

EPA Provides funding for environmental and climate justice 

activities to benefit disadvantaged communities 

through projects that reduce pollution, increase 

community climate resilience, and build community 

capacity to respond to environmental and climate 

justice challenges. 

Activities may include investments in low- and zeroemission and resilient technologies and related 

infrastructure. 

A partnership between at least two community-based nonprofit organizations (CBOs). 

A partnership between a CBO and one or any combination 

of the following: 

• a Federally-Recognized Tribe

• a local government

• an institution of higher education.