The US Federal Railroad Administration (FRA) is accepting applications for $25m in competitive grant funding available to railroads, suppliers and state and local governments for the implementation of positive train control (PTC).
The funding is part of the 2016 Consolidated Appropriations Act that funds the US Department of Transportation (DOT).
US transportation secretary Anthony Foxx said: "Positive train control is a long overdue technology that prevents accidents and saves lives.
"These funds will help us get closer to implementing PTC, and I encourage applications that can make these limited dollars go as far as possible."
It is reported that applications will be accepted until 19 May and the FRA will give preference to projects that will provide the greatest level of public safety benefits.
Under the fiscal 2017 budget proposal, the FRA requested $1.25bn to assist commuter and short line railroads with implementing PTC.
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By GlobalDataPTC works by preventing certain train-to-train collisions, over-speed derailments, incursions into established work zone limits, and trains going to the wrong tracks because a switch was left in the wrong position.
In 2008, the US Congress required the installation of PTC on certain railroad main lines where poisonous-by-inhalation hazardous (PIH) or toxic-by-inhalation hazardous (TIH) materials are transported, or any line where a railroad provides regularly scheduled passenger service.
The original deadline was extended from 31 December 2015 to at least 31 December 2018.
FRA administrator Sarah Feinberg said: "Any congressional funding and investment to make positive train control active on our nation’s railroad network is a worthwhile investment.
"But it will take even more significant funding to achieve this important, life-saving goal.
"We look forward to working with Congress to find these resources and encourage railroads to submit strong applications."