The Federal Railroad Administration (FRA) under the US Department of Transportation has issued a Notice of Funding Opportunity (NOFO) for $272m to rehabilitate publicly-owned railroad assets.

The NOFO was issued under the Federal-State Partnership for the State of Good Repair Program.

All eligible projects will have assets replaced or their capacity will be increased to ensure better services.

The grant will also be used to improve intercity passenger rail performance.

FRA Administrator Ronald Batory said: “It is important for rail infrastructure owners and operators to plan for the maintenance and replacement of their assets.

“The department particularly recognises the opportunity to reduce risk and enhance safety through this grant programme.”

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“The department particularly recognises the opportunity to reduce risk and enhance safety through this grant programme.”

The FRA said that the funds to be awarded under NOFO should not exceed 80% of the total project cost. The remaining 20% amount will be composed of public or private sector funding.

It will also provide preference to the projects where multiple applicants submitted jointly and the proposed federal share in costs is within 50%.

The department will also assess how the projects are aligned with the FRA priorities such as supporting economic vitality, utilising federal funding and leveraging new approaches to improve safety.

All applications to receive funding need to be submitted by 18 March.

In July, FRA issued another NOFO for more than $318m to Consolidated Rail Infrastructure and Safety Improvement (CRISI) grants.

These funds will be granted to projects that improve passenger and freight rail transportation safety and efficiency.

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