--- kind: "section" citation: "49 U.S.C. § 22301" title: "49" title_heading: "Transportation" number: "22301" heading: "Capital grants for class II and class III railroads" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/49/22301" units: - "Subtitle V — Rail Programs" - "Part B — Assistance" - "Chapter 223 — Capital Grants for Class Ii and Class Iii Railroads" --- # §22301. Capital grants for class II and class III railroads - (a) **Establishment of Program.—** - (1) **Establishment.—** The [Secretary](/usc/49/22401.md?p=14) of Transportation shall establish a program for making capital grants to class II and class III [railroads](/usc/49/22401.md?p=12). Such grants shall be for projects in the public interest that— - (A) - (i) rehabilitate, preserve, or improve [railroad](/usc/49/22401.md?p=12) track (including roadbed, bridges, and related track structures) used primarily for freight transportation; - (ii) facilitate the continued or greater use of [railroad](/usc/49/22401.md?p=12) transportation for freight shipments; and - (iii) reduce the use of less fuel efficient modes of transportation in the transportation of such shipments; or - (B) demonstrate innovative technologies and advanced research and development that increase fuel economy, reduce greenhouse gas emissions, and lower the costs of operation. - (2) **Provision of grants.—** Grants may be provided under this chapter— - (A) directly to the class II or class III [railroad](/usc/49/22401.md?p=12); or - (B) with the concurrence of the class II or class III [railroad](/usc/49/22401.md?p=12), to a [State](/usc/49/26105.md?p=5) or local government. - (3) **State cooperation.—** Class II and class III [railroad](/usc/49/22401.md?p=12) [applicants](/usc/49/22901.md?p=1) for a grant under this chapter are encouraged to utilize the expertise and assistance of [State](/usc/49/26105.md?p=5) transportation agencies in applying for and administering such grants. [State](/usc/49/26105.md?p=5) transportation agencies are encouraged to provide such expertise and assistance to such [railroads](/usc/49/22401.md?p=12). - (4) **Regulations.—** Not later than October 1, 2008, the [Secretary](/usc/49/22401.md?p=14) shall issue final regulations to implement the program under this section. - (b) **Maximum Federal Share.—** The maximum Federal share for carrying out a project under this section shall be 80 percent of the project cost. The non-Federal share may be provided by any non-Federal source in cash, equipment, or supplies. Other in-kind contributions may be approved by the [Secretary](/usc/49/22401.md?p=14) on a case-by-case basis consistent with this chapter. - (c) **Use of Funds.—** Grants provided under this section shall be used to implement track [capital projects](/usc/49/22901.md?p=2) as soon as possible. In no event shall grant funds be contractually obligated for a project later than the end of the third Federal fiscal year following the year in which the grant was awarded. Any funds not so obligated by the end of such fiscal year shall be returned to the [Secretary](/usc/49/22401.md?p=14) for reallocation. - (d) **Employee Protection.—** The [Secretary](/usc/49/22401.md?p=14) shall require as a condition of any grant made under this section that the recipient [railroad](/usc/49/22401.md?p=12) provide a fair arrangement at least as protective of the interests of [employees](/usc/49/21101.md?p=3) who are affected by the project to be funded with the grant as the terms imposed under [section 11326(a)](/usc/49/11326.md?p=a), as in effect on the date of the enactment of this chapter. - (e) **Labor Standards.—** - (1) **Prevailing wages.—** The [Secretary](/usc/49/22401.md?p=14) shall ensure that laborers and mechanics employed by contractors and subcontractors in construction work financed by a grant made under this section will be paid wages not less than those prevailing on similar construction in the locality, as determined by the [Secretary](/usc/49/22401.md?p=14) of Labor under subchapter IV of [chapter 31](/usc/40/chstII/ptA/ch31.md) of title 40 (commonly known as the “Davis-Bacon Act”). The [Secretary](/usc/49/22401.md?p=14) shall make a grant under this section only after being assured that required labor standards will be maintained on the construction work. - (2) **Wage rates.—** Wage [rates](/usc/49/24102.md?p=10) in a collective bargaining agreement negotiated under the Railway Labor Act ([45 U.S.C. 151](/usc/45/151.md) et seq.) are deemed for purposes of this subsection to comply with the[^1] subchapter IV of chapter 31 of title 40. - (f) **Study.—** The [Secretary](/usc/49/22401.md?p=14) shall conduct a study of the projects carried out with grant assistance under this section to determine the extent to which the program helps promote a reduction in fuel use associated with the transportation of freight and demonstrates innovative technologies that increase fuel economy, reduce greenhouse gas emissions, and lower the costs of operation. Not later than March 31, 2009, the [Secretary](/usc/49/22401.md?p=14) shall submit a report to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate on the study, including any recommendations the [Secretary](/usc/49/22401.md?p=14) considers appropriate regarding the program. - (g) **Authorization of Appropriations.—** There is authorized to be appropriated to the [Secretary](/usc/49/22401.md?p=14) $50,000,000 for each of fiscal years 2008 through 2011 for carrying out this section. ## Footnotes [^1]: So in original. The word “the” probably should not appear. ## Source credit (Added Pub. L. 110–140, title XI, § 1112(a), Dec. 19, 2007, 121 Stat. 1758; amended Pub. L. 110–432, div. A, title VII, § 701(b), Oct. 16, 2008, 122 Stat. 4906.) ## Notes ### Editorial Notes ### References in Text The date of the enactment of this chapter, referred to in subsec. (d), probably means the date of enactment of Pub. L. 110–140, which amended this chapter generally and was approved Dec. 19, 2007. The Railway Labor Act, referred to in subsec. (e)(2), is act May 20, 1926, ch. 347, 44 Stat. 577, which is classified principally to chapter 8 (§ 151 et seq.) of Title 45, Railroads. For complete classification of this Act to the Code, see section 151 of Title 45 and Tables. ### Prior Provisions A prior section 22301, added Pub. L. 105–178, title VII, § 7202(a), June 9, 1998, 112 Stat. 470, related to grants for light density rail line pilot projects, prior to the general amendment of this chapter by Pub. L. 110–140. ### Amendments 2008—Subsec. (a)(1)(A)(iii). Pub. L. 110–432 substituted “or” for “and”. ### Statutory Notes and Related Subsidiaries ### Effective Date Section effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as a note under section 1824 of Title 2, The Congress.