Railroad Crossing Elimination Grant: $1.15 Billion for Crossing Safety Projects (FY 2025-2026)

The Federal Railroad Administration (FRA) has announced $1.15 billion in funding through the Railroad Crossing Elimination (RCE) Grant Program for fiscal years 2025 and 2026. This program targets one of the most persistent safety challenges in rail transportation: highway-rail grade crossings, where roughly 2,000 collisions occur each year in the United States.

With approximately 120 awards expected and a minimum award of $1 million (except for planning projects), the RCE program funds grade separations, crossing closures, signal and gate improvements, track relocations, and safety technology installations across the country.

Program Overview

The Railroad Crossing Elimination Program was established by the Infrastructure Investment and Jobs Act (IIJA) under 49 U.S.C. § 22909. It is the first dedicated federal grant program focused specifically on eliminating hazards at highway-rail grade crossings.

The program funds projects that:

• Separate highway and rail traffic through grade-separated crossings (bridges, overpasses, tunnels)
• Close at-grade crossings permanently
• Improve safety with new or upgraded signals, gates, and warning devices
• Relocate rail lines away from populated areas
• Install safety technology like wayside detection, intrusion detection, and dynamic envelope delineation

Funding Set-Asides

Within the $1.15 billion total, FRA has designated specific set-asides to ensure broad geographic and programmatic reach:

• Planning Set-Aside: $36 million (approximately 3%) reserved specifically for Planning-stage projects. These do not require the $1 million minimum award threshold.
• Rural and Tribal Set-Aside: $229.3 million (20%) reserved for projects in rural areas or on tribal lands, based on Census Bureau Urban Area definitions
• Safety Information and Education Set-Aside: $3 million for public awareness and education campaigns about crossing safety

Note that no single state may receive more than 20% of total program funds ($229.3 million), ensuring geographic distribution of awards across the country.

Who Can Apply

The RCE program has broad eligibility. Eligible applicants include:

1. States (including the District of Columbia)
2. Political subdivisions of a State (counties, cities, townships)
3. Federally recognized Indian Tribes
4. Local governments or local governmental authorities
5. Port authorities
6. Metropolitan planning organizations (MPOs)
7. Groups of any of the above entities

This means cities, counties, and regional transportation agencies can apply directly without needing a state DOT as lead applicant, though coordination with the state is still recommended.

Eligible Project Types

RCE funds a range of crossing safety projects, from planning studies to full construction:

Grade Separation and Closure

• Grade-separated crossings: Constructing highway bridges, rail overpasses, embankments, or tunnels to separate highway and rail traffic
• Crossing closures: Permanently closing at-grade crossings to eliminate the hazard entirely
• Track relocation: Moving rail lines to avoid populated areas or reduce the number of at-grade crossings

Signal and Safety Improvements

• Installing or upgrading railroad crossing signals, gates, and warning systems
• Highway traffic signalization improvements near crossings
• Roadway improvements at or near crossings to improve sight distance or approach geometry

Safety Technology

• Wayside detection and health monitoring systems
• Crossing intrusion detection systems
• Dynamic envelope delineation technology
• Other innovative crossing safety solutions

Planning and Environmental Review

• Planning studies for crossing improvements along a corridor
• Environmental review (NEPA) and preliminary engineering
• Design work for future construction phases

Project Lifecycle Stages

Every project must be assigned to one or more of FRA's Lifecycle Stages. Eligible stages for RCE funding are:

1. Project Planning: Feasibility studies, alternatives analysis, and conceptual design
2. Project Development: NEPA environmental review, preliminary engineering, and right-of-way acquisition
3. Final Design: Detailed engineering, specifications, and construction-ready drawings
4. Construction: Building the project, including all construction activities and commissioning

Systems Planning and Operation stages are not eligible for RCE funding. FRA gives strong preference to projects in the Final Design and Construction stages, as they demonstrate the highest level of readiness.

Cost Sharing Requirements

The federal share may not exceed 80 percent of total project costs. Key details on matching funds:

• Applicants must provide at least a 20% non-federal match
• Non-federal match can include state, local, private, or other non-federal funding
• In-kind contributions may qualify if they meet 2 CFR 200.306 requirements
• Applicants must identify and document all funding sources
• Evidence of secured non-federal funding strengthens your application

Application Requirements

The Project Narrative may not exceed 25 pages (excluding cover pages, table of contents, and supporting documentation). Key elements include:

1. Cover Page: Project title, applicant, funding amounts, project location, lifecycle stages, and railroad information
2. Project Summary: Brief summary of the problem, proposed solution, and expected outcomes
3. Grant Funds, Sources, and Uses: Detailed budget by lifecycle stage and funding source
4. Applicant Eligibility: How your organization meets the eligibility requirements
5. Project Eligibility: How your project meets eligible project types under the RCE program
6. Detailed Project Description: Crossing inventory, safety history, proposed improvements, and statement of work
7. Project Location: Geospatial data, maps, crossing DOT numbers, and Congressional districts
8. Evaluation Criteria Responses: Detailed responses to project readiness, technical merit, and project benefits criteria

Required forms include SF 424 (Application for Federal Assistance) and a Benefit-Cost Analysis (BCA).

Evaluation Criteria

FRA evaluates applications on three criteria:

1. Project Readiness

FRA assesses whether the project is prepared for the proposed lifecycle stage. This includes NEPA status, railroad agreements, right-of-way acquisition, utility relocation plans, and evidence of secured funding. Projects further along in development score higher.

2. Technical Merit

FRA evaluates whether the application describes a sound technical approach, including:

• Qualifications of the project team and key personnel
• Railroad coordination and infrastructure owner agreements
• Reasonableness of the project schedule and budget
• Past performance on similar transportation projects
• Use of innovative approaches and technology

3. Project Benefits

FRA evaluates anticipated safety, mobility, and community benefits, including:

• Reduction in crash risk at the targeted crossings
• Improvements to vehicle and pedestrian traffic flow
• Benefits to rail operations and efficiency
• Community impacts including reduced noise, vibration, and emergency response delays
• Environmental benefits and emissions reductions

Selection Preferences

After the merit review, FRA gives preference to projects that:

• Build grade-separated crossings: Projects that fully separate highway and rail traffic receive the strongest preference
• Relocate tracks to close crossings: Track relocation projects that permanently eliminate at-grade crossings
• Take a corridor approach: Improvements addressing multiple crossings along a rail corridor rather than a single crossing
• Are in Final Design or Construction stages: Projects that are ready to advance quickly
• Continue work from prior rounds: Projects that received earlier RCE funding for planning or development and are now advancing to the next lifecycle stage

Tips for a Strong Application

1. Focus on grade separation or closure: FRA's strongest selection preference goes to projects that fully separate or eliminate at-grade crossings. If possible, frame your project around these outcomes.
2. Think corridor-wide: Applications addressing multiple crossings along a corridor are preferred over single-crossing projects. Consider bundling nearby crossings into one application.
3. Advance your project stage: Final Design and Construction projects are preferred. Complete as much preliminary engineering and environmental review as possible before applying.
4. Document the safety case: Use FRA's crossing inventory data, crash history, and exposure metrics (train and vehicle volumes) to quantify the hazard at your target crossings.
5. Secure railroad agreements early: Coordination with the host railroad (typically a Class I carrier) is critical. Signed agreements or letters of support demonstrating cooperation will strengthen readiness.
6. Leverage the rural/tribal set-aside: With $229.3 million reserved for rural and tribal projects, applicants in these areas should clearly document their qualification using Census Bureau definitions.
7. Prepare a solid Benefit-Cost Analysis: Quantify safety benefits (crashes prevented), mobility improvements (reduced vehicle delay), and broader community impacts using DOT guidance.

How to Apply

1. Register on Grants.gov and ensure your organization's SAM.gov registration is active
2. Download the application package from Grants.gov (Opportunity Number: FR-RCE-26-001)
3. Prepare your 25-page Project Narrative following FRA's required outline
4. Complete the Benefit-Cost Analysis
5. Complete all required forms (SF 424, budget forms, certifications)
6. Submit via Grants.gov by June 8, 2026 at 11:59 p.m. EDT

For questions, contact Jenny Zeng at Jenny.Zeng@dot.gov or (857) 330-2481.

Related Resources

• CRISI Grant: $2 Billion for Rail Infrastructure and Safety Improvements
• Safe Streets and Roads for All (SS4A) FY 2026 Grant
• Complete Guide to Federal Grants

How Avila Can Help

The RCE application requires a detailed 25-page project narrative, a Benefit-Cost Analysis, and coordination across multiple stakeholders. Avila uses AI to help you quickly assess whether the RCE program is the right fit for your crossing project, draft your project narrative to FRA's specifications, and organize your supporting materials. Book a demo to see how Avila can streamline your RCE application.