The US state of Connecticut will contribute $260m to upgrade the New Haven-Hartford-Springfield rail corridor.
The state aims to construct a 62-mile high-speed rail track through the New England region within five years.
Connecticut governor M Jodi Rell said the upgrades include fixing existing stations, building new ones and increasing the efficiency and frequency of freight and passenger services.
The New Haven-Hartford-Springfield line is intended to reduce the number of cars on the road by 4,000 each day and increase the connectivity of rail systems at all train stations.
The rail project plans to save one billion gallons of fossil fuel annually and reduce carbon emissions by over 10,000t a year, according to connecticutplus.com.
Connecticut is working jointly with Massachusetts and Vermont to deliver the project, which is also expected to get $220m in federal funding.