NEW JERSEY — The New Jersey Department of Transportation is accepting applications for $25 million in Fiscal Year 2027 grants aimed at improving the state’s freight rail system and supporting economic activity.
Applications for NJDOT’s Rail Freight Assistance Program are being accepted through Oct. 9, 2026.
The program provides $25 million annually to preserve and improve New Jersey’s existing freight transportation system and expand the availability of freight rail service to businesses across the state. NJDOT said rail freight improvements also support the state’s clean energy, congestion mitigation and sustainable development goals.
Over the past five years, NJDOT has invested more than $139.32 million in the state’s freight rail services using Transportation Trust Fund money. Railroad owners and operators contributed an additional $17.04 million, bringing the total investment through the program to nearly $156.4 million.
Administered by NJDOT’s Division of Local Aid, the program provides funding for capital improvements that help maintain economically viable freight rail service in New Jersey.
Grants are awarded through a competitive process, with an emphasis on projects that improve connections to port commerce, eliminate missing freight rail links to New Jersey port facilities, upgrade tracks to a 286,000-pound load-carrying capacity and support a safe and efficient freight rail system.
The grants can cover up to 90% of a project’s estimated cost, with the sponsor responsible for the remaining amount.
Owners and operators of short-line railroads in New Jersey with an existing use and maintenance arrangement with the owner may apply. Applicants must have an Eligibility Assessment Form approved through the state’s System for Administering Grants Electronically, or SAGE, before submitting an application.
Applicants may submit no more than two applications per fiscal year. Proposals must be submitted through SAGE.
Additional information about the Rail Freight Assistance Program is available through the NJDOT Local Aid Resource Center.
