The New Jersey Department of Transportation (NJDOT) recently opened the application period for $25 million in fiscal year 2026 Rail Freight Assistance Program grants.
The program funds capital improvements that result in the continuation of economically viable rail freight services. It provides $25 million annually to projects that preserve and improve the existing freight transportation system, make freight rail service more widely available for businesses, and support the state’s clean energy, congestion mitigation and sustainable development goals.
The owners of short line railroads and operators that have an existing use and maintenance arrangement with an owner are eligible to apply. Applications must be filed electronically by Oct. 10. Grants will cover up to 90 percent of the estimated cost of a project while the sponsor is responsible for the remaining amount.
The NJDOT Division of Local Aid administers the program. Emphasis is placed on projects that eliminate rail freight missing links to New Jersey’s port facilities, upgrade freight rail trackage to a 286,000-pound load carrying capacity, provide significant to port commerce connectivity, and support a safe, efficient and effective rail freight system.
New Jersey Gov. Phil Murphy’s administration has invested more than $194.1 million in New Jersey’s freight rail services via Transportation Trust Funds.