Rail Freight Assistance Program

Rail Freight Assistance Program is sponsored by New Jersey Department of Transportation (NJDOT). This program funds projects that improve New Jersey's existing freight system and expand freight service for businesses.

Rail Freight Assistance Program - NJDOT Local Hub Rail Freight Assistance Program Rail Freight Assistance Program The New Jersey Rail Freight Assistance Program (RFAP) was established in 1976 for the purpose of maintaining and supporting an efficient freight rail system in the State of New Jersey.

RFAP provides $25 Million annually in funding to provide and oversee financial assistance in order to preserve, rehabilitate, and enhance rail freight infrastructure.

Rail Freight Assistance Program An owner of the rail property on which the improvement is intended to take place An operator of rail freight service that has a defined legal arrangement with the line or property owner A responsible public agency or authority (municipality or county) that has an applicable freight rail line within their geographic domain Support and promote economic activity in NJ by preserving and improving the freight transportation system Increase the number of businesses served by rail freight Protect the critical corridors and connections to the national network Ensure freight movement within the State serves customers efficiently and effectively Support rail and intermodal services that exhibit potential for long-term economic viability Provide transportation facilities that satisfy the requirements of freight shippers and the industries they serve Promote joint private and public funding of rail freight and intermodal improvement projects Support the development of intermodal facilities and services How Projects Are Evaluated The project promotes New Jersey economic activity by preserving and improving the freight transportation system, increasing employment through enhanced rail freight services and intermodal facilities, expanding businesses served by rail freight, and protecting critical corridors and connections to the national network.

Efficient and Responsive Freight Distribution The project ensures efficient freight movement, supports economically viable rail and intermodal services, provides facilities meeting freight shipper and industry requirements, and promotes joint private and public funding of rail freight and intermodal improvements.

Energy and Environmental Conservation The project maximizes energy conservation and emission reduction by promoting efficient freight systems, supports energy efficient rail freight and intermodal transportation, and minimizes detrimental environmental impacts.

Highway Congestion Mitigation The project reduces vehicular traffic by providing a viable alternative to long-haul over-the-road freight shipments, supports team track development with freight distribution and storage facilities, and supports intermodal transfer facilities and services.

Supporting Rail Freight Infrastructure RFAP provides and oversees financial assistance in order to preserve, rehabilitate, and enhance rail freight infrastructure. Financial assistance is available and may be provided to Class I, Class II, and Class III railroads . For Class I railroads, financial assistance may be provided at 50 percent of the total eligible cost with the remaining 50 percent to be paid by the sponsor.

For Class II railroads, financial assistance may be provided at 70 percent of the total eligible cost with the remaining 30 percent to be paid by the sponsor. For Class III railroads, financial assistance may be provided at 90 percent of the total eligible cost with the remaining 10 percent to be paid by the sponsor.

A project can be categorized as one of the following: Significant to port commerce connectivity Eliminate rail freight missing link to New Jersey’s port facilities Upgrade freight rail trackage to a 286,000-pound load carrying capacity Support a safe, efficient, and effective rail freight system in New Jersey Ineligible projects include those that: Provide for routine maintenance Request Financial Assistance for the purpose of an operating cost subsidy Applications must be made through the SAGE system.

Incomplete applications will not be considered for funding and Modal Grant staff may request additional information. Applicants can submit a maximum of two applications per grant cycle. NJDOT Modal Grants will conduct outreach at NJDOT Freight Advisory Committee meetings, New Jersey Railroad Association (NJRRA) Meetings, and other venues.

Project Applicants must complete an Applicant Eligibility Assessment Form and receive approval from Modal Grants to be eligible to apply for RFAP funds. The Applicant Eligibility Form will be in effect for three years, and subject to review and update in the third year. Applicants can submit two applications per grant cycle.

Project Sponsors or Applicants can schedule a meeting with Modal Grants staff to better understand or review grant-related requirements.

The full name and principal business address of the applicant The name, title, address and phone number of the persons to whom correspondence regarding the application should be addressed Railroad Class Certification (1, 2, or 3) A project description and benefits with proper justification Photographs of the project area/existing condition A cost breakdown of the projects (Detail cost with unit price) A detailed project schedule with identified milestones and completion date Assurances that the applicant is able to meet all the requirements of the financial assistance, including the provision of the sponsor’s share of total project costs A certification signed by the owner of the property granting permission to the applicant to undertake the project Proof of Liability Insurance Signed applicant submission certification within 30 days of submission FY 2026 Rail Freight Assistance Program Recipients Need help or have a question?