NOFO Deep Dive: What Projects Are Likely To Win From The New $5B

Quick Background and Purpose
USDOT and FRA have opened a Notice of Funding Opportunity (NOFO) for the National Railroad Partnership Program, allocating over $5 billion for passenger-rail safety upgrades. The focus is on grade-crossing elimination, trespass prevention, signal modernization, and state-of-good-repair work tied to safety.  Applications are open now, with deadlines listed by FRA for early January 2026.

Operational Directive
Applicants should prioritize projects that are shovel-ready, data-driven, and deliver measurable safety outcomes. Readiness, strong partnerships, and benefit-cost support will be decisive.

What Will Likely Get Funded

• Grade crossing improvements: closures, separations, advanced warning systems

• Trespass prevention: fencing, lighting, detection technologies

• Signal and PTC upgrades: interlocking and communications reliability

• Track and bridge rehabs: curve realignments, drainage, safety-focused state-of-good-repair

• Station-area safety: pedestrian channelization, ADA access, safer platform flows

Approved / Awarded Projects & Why They Were Selected

Below are a few recent examples of rail projects that have already been funded or approved, and insight into why they fit the criteria:

These examples tell us a few things:

• Grade crossing elimination or major upgrades remain among the highest priority safety interventions.

• Projects that already have design, environmental work, or “near ready” status are strong candidates.

• Multi-stakeholder corridor projects (where freight, passenger, local jurisdiction intersect) often get attention.

• Regional or programmatic bundles of work (e.g. CREATE) demonstrate economies of scale, which helps justify funding.

Call to Action by Team (with Approved Project Lessons)

For Railroads

• Map existing crossings or segments where crossing incidents, delays, or safety complaints are concentrated; propose them as candidates.

• Identify any already designed or planned (but unfunded) crossings, separations, or signal upgrades and ready the documentation.

• Partner with states/local governments to create bundled submissions (e.g. multiple crossings along one corridor) to mimic approaches like the RCE program.

For State DOTs / MPOs / Local Governments

• Advance local resolutions, right-of-way agreements, and support letters now with enabling projects like Charlotte’s grade separation to move from concept to design.

• Aggregate smaller crossing upgrades into regional packages, increasing scale and appeal.

• Offer matching funds or incentives to attract railroad support, the stronger local match often pushes a proposal over the edge.

For Contractors / Engineering / Design Firms

• Prepare “ready-to-go” deliverables: final design, environmental clearance, utility relocations, cost estimates.

• Leverage past awards as case studies (e.g. crossing elimination, separation) to show credibility.

• Propose value engineering and lifecycle cost reduction that strengthens benefit-cost narratives.

For Passenger / Corridor Operators (e.g. Amtrak, Commuter Rail)

• Provide ridership, delay, and safety data to strengthen justification of projects.

• Be active in corridor planning: for example, if an intercity passenger corridor runs through an urban area with multiple crossings, propose a bundled package.

• Communicate the operational risk / benefit (e.g. reliability, fewer emergency stops) as part of the proposal narrative.

Holiday Season Impacts

Staff availability drops in November and December. If your project needs letters of support, railroad concurrence, or local resolutions, start now so your package is not stalled by year-end schedules.

That is all for this week’s RailCore Report. Thank you for staying ahead of the curve and for keeping freight and the future moving.

Author: Jennifer Winter