Sherrill Administration announces $26.3 million in FY26 Rail Freight Assistance Program grants
(Trenton) – The Sherrill Administration today announced the awarding of 11 FY26 Rail Freight Assistance Program grants totaling more than $26.3 million funded through the State Transportation Trust Fund.
The grants help support economic activity by preserving and improving the existing freight transportation system and by making freight rail service more widely available for businesses throughout the state. Rail freight improvements support the state’s clean energy, congestion mitigation, and sustainable development goals.
“The Sherrill Administration is committed to strengthening our economy in a sustainable way and the Rail Freight Assistance Program does that,” NJDOT Commissioner Priya Jain said. “These grants for critical rail freight infrastructure improvements are investments in our future to provide for the safe and efficient movement of goods in New Jersey, while reducing truck traffic on our highways.”
The 11 projects receiving funding are located in ten counties and include marine terminal rail improvements; rehabilitation and repair of several rail bridges; capacity expansion at port facilities; and installing rail, ties, and surface improvements on a rail line. For a list of the projects receiving grants, click here. The $26.3 million in state grants will leverage an additional $3.4 million from railroad owners and operators, bringing the total investment in these 11 projects to more than $29.7 million.
In the last five years, NJDOT has invested more than $139.32 million in New Jersey’s freight rail services using TTF funds, leveraging an additional $17.04 million from railroad owners and operators, for a total of nearly $156.4 million in Rail Freight Assistance Program investment.
The Rail Freight Assistance Program, administered by the NJDOT Division of Local Aid – Modal Grants, provides funding for capital improvements that result in the continuation of economically viable rail freight services in the state. Factors considered in the selection of projects include: existing condition, type of project, efficient and responsive freight distribution, and highway congestion mitigation. Project sponsors are required to continue freight service on the improved line for at least ten years after completion of the project.
The New Jersey Rail Freight Assistance Program grants typically provide funding for up to 90 percent of the eligible estimated cost of each project while the sponsor is responsible for providing the remaining amount. Application proposals are accepted through SAGE, the State’s on-line System for Administering Grants Electronically.
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