---
kind: "section"
citation: "49 U.S.C. § 22101"
title: "49"
title_heading: "Transportation"
number: "22101"
heading: "Financial assistance for State projects"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/22101"
units:
  - "Subtitle V — Rail Programs"
  - "Part B — Assistance"
  - "Chapter 221 — Local Rail Freight Assistance"
---

# §22101. Financial assistance for State projects

- (a) **General.—** The [Secretary](/usc/49/22401.md?p=14) of Transportation shall provide [financial assistance](/usc/49/26105.md?p=1) to a [State](/usc/49/26105.md?p=5), as provided under this chapter, for a rail freight assistance project of the [State](/usc/49/26105.md?p=5) when a [rail carrier](/usc/49/24102.md?p=9) subject to part A of subtitle IV of this title maintains a rail line in the [State](/usc/49/26105.md?p=5). The assistance is for the cost of—
  - (1) acquiring, in any way the [State](/usc/49/26105.md?p=5) considers appropriate, an interest in a rail line or rail property to maintain existing, or to provide future, rail freight transportation, but only if the Surface Transportation [Board](/usc/49/28501.md?p=1) has authorized, or exempted from the requirements of that authorization, the abandonment of, or the discontinuance of rail transportation on, the rail line related to the project;
  - (2) improving and rehabilitating rail property on a rail line to the extent necessary to allow adequate and efficient rail freight transportation on the line, but only if the [rail carrier](/usc/49/24102.md?p=9) certifies that the rail line related to the project carried not more than 5,000,000 gross ton-miles of freight a mile in the prior year; and
  - (3) building rail or rail-related facilities (including new connections between at least 2 existing rail lines, [intermodal](/usc/49/22401.md?p=5) freight terminals, sidings, bridges, and relocation of existing lines) to improve the quality and efficiency of the rail freight transportation, but only if the [rail carrier](/usc/49/24102.md?p=9) certifies that the rail line related to the project carried not more than 5,000,000 gross ton-miles of freight a mile in the prior year.
- (b) **Calculating Cost-Benefit Ratio.—** The [Secretary](/usc/49/22401.md?p=14) shall establish a methodology for calculating the ratio of benefits to costs of projects proposed under this chapter. In establishing the methodology, the [Secretary](/usc/49/22401.md?p=14) shall consider the need for equitable treatment of different regions of the United States and different commodities transported by rail. The establishment of the methodology is committed to the discretion of the [Secretary](/usc/49/22401.md?p=14).
- (c) **Conditions.—**
  - (1) Assistance for a project shall be provided under this chapter only if—
    - (A) a [rail carrier](/usc/49/24102.md?p=9) certifies that the rail line related to the project carried more than 20 carloads a mile during the most recent year during which transportation was provided by the carrier on the line; and
    - (B) the ratio of benefits to costs for the project, as calculated using the methodology established under [subsection (b)](#b) of this section, is more than 1.0.
  - (2) If the [rail carrier](/usc/49/24102.md?p=9) that provided the transportation on the rail line is no longer in existence, the [applicant](/usc/49/22901.md?p=1) for the project shall provide the information required by the certification under paragraph (1)(A) of this subsection in the way the [Secretary](/usc/49/22401.md?p=14) prescribes.
  - (3) The [Secretary](/usc/49/22401.md?p=14) may waive the requirement of paragraph (1)(A) or (2) of this subsection if the [Secretary](/usc/49/22401.md?p=14)—
    - (A) decides that the rail line has contractual guarantees of at least 40 carloads a mile for each of the first 2 years of operation of the proposed project; and
    - (B) finds that there is a reasonable expectation that the contractual guarantees will be fulfilled.
- (d) **Limitations on Amounts.—** A [State](/usc/49/26105.md?p=5) may not receive more than 15 percent of the amounts provided in a fiscal year under this chapter. Not more than 20 percent of the amounts available under this chapter may be provided in a fiscal year for any one project.

## Source credit

(Pub. L. 103–272, § 1(e), July 5, 1994, 108 Stat. 894; Pub. L. 104–88, title III, § 308(f)(1), (2), Dec. 29, 1995, 109 Stat. 947.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 22101(a) | 49 App.:1654(b). | Oct. 15, 1966, Pub. L. 89–670, 80 Stat. 931, § 5(b), (c), (n)–(p); added Feb. 5, 1976, Pub. L. 94–210, § 803, 90 Stat. 130; Nov. 8, 1978, Pub. L. 95–607, §§ 102– 106(a), 107–109(a), 92 Stat. 3059, 3062; Oct. 12, 1979, Pub. L. 96–86, § 115(b), 93 Stat. 662; Aug. 13, 1981, Pub. L. 97–35, §§ 1191, 1192, 95 Stat. 699; Jan. 14, 1983, Pub. L. 97–468, § 501, 96 Stat. 2551; Apr. 7, 1986, Pub. L. 99–272, § 4018, 100 Stat. 111; restated Dec. 11, 1989, Pub. L. 101–213, § 2(a), (c), 103 Stat. 1843, 1844, 1848. |
|  | 49 App.:1654(p). |  |
| 22101(b) | 49 App.:1654(n). |  |
| 22101(c) | 49 App.:1654(c). |  |
| 22101(d) | 49 App.:1654(o). |  |

In this chapter, the word “transportation” is substituted for “service” for consistency in the revised title.

In subsection (a), before clause (1), the words “when a rail carrier . . . maintains a rail line in the State” are substituted for “As used in this section, the term ‘State’ means any State in which a rail carrier providing transportation . . . maintains any line of railroad” because of the restatement. The words “the jurisdiction of the Interstate Commerce Commission” are omitted as unnecessary because of 49:ch. 105. In clause (1), the words “by purchase, lease” are omitted as being included in “in any way the State considers appropriate” to eliminate unnecessary words.

In subsection (b), the words “no later than July 1, 1990” are omitted as executed.

In subsection (c)(1), before clause (A), the words “Assistance for a project shall be provided under this chapter only if” are substituted for “No project shall be provided rail freight assistance under this section unless” because of the restatement.

In subsection (c)(2), the words “If the rail carrier that provided the transportation on the rail line” are substituted for “In a case where the railroad”, and the words “information required by the certification under paragraph (1)(A) of this subsection” are substituted for “such information”, for clarity.

### Editorial Notes

### Amendments

1995—Subsec. (a). Pub. L. 104–88 substituted “part A of subtitle IV” for “subchapter I of chapter 105” in introductory provisions and “Surface Transportation Board” for “Interstate Commerce Commission” in par. (1).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1995 Amendment

Amendment by Pub. L. 104–88 effective Jan. 1, 1996, see section 2 of Pub. L. 104–88, set out as an Effective Date note under section 1301 of this title.