The state Department of Transportation is now accepting applications through Oct. 10 for $25 million in FY 2026 grants to fund improvements to the existing freight transportation system and help make freight rail service more accessible to New Jersey businesses.
The Rail Freight Assistance Program (RFAP) funds capital improvements that result in the continuation of safe and economically viable rail freight services in the state. Grants are awarded through a competitive process, with an emphasis on projects that are significant to port commerce connectivity; eliminate rail freight missing links to New Jersey’s port facilities; and upgrade freight rail trackage to a 286,000-pound load-carrying capacity.
The RFAP grants provide funding for up to 90% of the estimated cost of each project. Owners and/or operators of short line railroads in New Jersey that have an existing use and maintenance arrangement with the owner, can apply.
Application proposals are accepted through SAGE, the state’s on-line System for Administering Grants Electronically. All applicants must have an Eligibility Assessment Form approved through the SAGE system prior to submitting an application. An applicant can submit a maximum of two applications per fiscal year.
During the past eight years, the state has invested $194.1 million in New Jersey’s freight rail services using Transportation Trust Fund monies, leveraging an additional $56.4 million from railroad owners and operators, for a total of nearly $250.5 million in Rail Freight Assistance Program investment.
For more information about the Rail Freight Assistance Program or other Local Aid programs go to www.njdotlocalaidrc.com or call 609-649-9395.