American High-Speed Rail Act

Key Points

• The bill authorizes $205 billion over five years (2027-2031) for high-speed rail, including $35 billion per year for corridor development and $3 billion per year each for corridor planning and technology improvements. This is the largest proposed federal investment in high-speed rail in U.S. history.
• The federal government could cover up to 100% of a project's cost, removing the old requirement that states and local governments match federal dollars. However, the Secretary must prioritize projects where at least 20% of funding comes from state, local, private, or other specified sources.
• The bill creates a new category called 'higher-speed rail' for trains between 110 and 186 mph, and redefines true high-speed rail as 186 mph or faster. Up to 20% of total planning and development funds can go toward these higher-speed (but not full high-speed) projects.
• Freight railroads that sell, lease, or grant easements on their land for high-speed rail projects would receive tax-free treatment on those gains. The government would also reimburse them for buying replacement property along the right-of-way.
• The bill allows land purchases for rail corridors to begin before environmental reviews are complete, as long as the acquisition doesn't cause significant environmental harm or limit the choice of reasonable project alternatives. This is meant to lock in land costs and speed up project timelines.
• Workers operating on rail infrastructure built with these federal funds would be covered by railroad labor laws, including the Railway Labor Act and Railroad Retirement Act. Construction contractors are generally exempt from these requirements unless they perform traditional railroad maintenance work.