Source: Getty Image

As part of Indiana’s long-term transportation funding legislation, passed in 2017, lawmakers 

approved the Local TRAX rail overpass program to help communities reduce rail crossing 

crashes and fatalities.

Overseen by the Indiana Department of Transportation (INDOT), the Local TRAX rail overpass 

program provides grants to cities, towns, and counties for grade separations, crossing closures, 

and other safety enhancements at rail-highway intersections on local roads. In addition to 

safety benefits, the Local TRAX rail overpass program encourages partnerships across INDOT, 

local communities, businesses, industry, and railroads to improve mobility and enhance quality 

of life for residents through rail-related transportation projects.

The program requires local governments to provide 20 percent of funding for land acquisition 

and construction, with the remaining 80 percent provided by the State. This funding match can 

be reached through any local partnership, including funding from the host railroad. INDOT will 

also pay 100 percent of design and inspection fees for projects awarded under this program.

To fund the Local TRAX rail overpass program, the Indiana Finance Authority will issue and 

distribute bonds. While the program is not a revolving grant fund, INDOT awarded more than $121 million in 

State-matching funds to 12 communities in 2018 to pursue high-priority railroad grade separations, crossing 

closures, and other safety enhancements at railroad crossings. 

STATE PROGRAMS FUND RAIL CROSSING 

SAFETY IMPROVEMENTS

Noteworthy Practice

Indiana “on TRAX” to Reduce Rail Crossing Crashes and Fatalities 

Local TRAX has given communities a chance to realize projects that have been stuck in neutral for 

years. These communities have dreamed of these projects, but in many cases could not fund and 

deliver them on their own. I give credit to Governor Eric Holcomb and the Indiana legislature for 

being aware of the challenges these railroad communities face, and having the vision to create 

a program that can help. I take great pride in working on an initiative that will save lives and 

transform so many Hoosier communities.

Jason Holder, INDOT Local TRAX Program Manager

Source: Getty Images
STATE PROGRAMS FUND RAIL CROSSING SAFETY IMPROVEMENTS

http://safety.fhwa.dot.gov

FHWA-SA-19-036

Nebraska’s Tried-and-True Approach

Originally established in 1979, Nebraska’s Grade Separation fund 

charges a $0.075 excise tax for each train mile operated by a railroad 

that transports freight in the State. Nebraska also charges a $100 tax for 

each public grade crossing on the railroad’s line in the State. Every year, 

each railroad submits to the Department of Revenue a report of the total 

train miles operated in the State during the previous year, as well as the 

number of public grade crossings on its line. A total of 10 railroad entities 

that haul freight are taxed under this program. On average, the program 

generates approximately $3 million of revenue per year.

The Nebraska Department of Transportation (NDOT) Grade Separation 

Committee oversees and manages grade separation funds, which must be 

used for construction, rehabilitation, relocation, or modification of railroad grade separation facilities. New grade 

separation projects require closing a minimum of two public at-grade crossings: one at or near the location of the 

structure, and one or more at locations selected and approved by NDOT and the applicable local government. 

From 2000 to 2019, grade separation funds have helped fund construction of 15 viaducts and approximately 

30 grade crossings closures.

NDOT believes the train mile tax works well in Nebraska because it helps increase the number of grade separation 

projects for construction, which in turn increases collaboration with railroads on transportation solutions. NDOT 

and the railroad companies share a common interest in hazard elimination, safety, and efficiency at crossings, and 

the train mile tax helps to financially achieve those goals. 

Photo courtesy of the Nebraska Department of Transportation

Source: Getty Images

Sources:

Indiana Department of Transportation, “Local Trax Matching Grant” web page, accessed October 29, 2019, https://www.in.gov/indot/2390.htm.

Indiana Department of Transportation, “Gov. Holcomb, INDOT Award More Than $121 million in State Matching Funds for Rail Crossing Safety 

Improvements Through Local Trax Grants,” press release, December 13, 2018, available at https://content.govdelivery.com/accounts/INDOT/

bulletins/2224b0b.

Travis Haberman (Railroad Liaison Manager, Nebraska Department of Transportation), email communication, October 24-25, 2019.

Nebraska Department of Transportation, Grade Separation Funding Options, 2018, available at https://policy.transportation.org/wp-content/

uploads/sites/35/2018/09/Grade-Separation-Funds-in-Nebraska.pdf.

$3M Revenue

Generated per year with Nebraska’s 

Grade Separation program