Funds will improve the existing freight system to promote economic activity
(Trenton) – The New Jersey Department of Transportation (NJDOT) today announced the grant application period for the Fiscal Year 2027 Rail Freight Assistance Program (RFAP) is open with applications being accepted from now through October 9, 2026.
The Rail Freight Assistance Program provides $25 million annually to help support economic activity by preserving and improving the existing freight transportation system and by making freight rail service more widely available for businesses throughout the state. Rail freight improvements support the state’s clean energy, congestion mitigation, and sustainable development goals.
In the last five years, NJDOT has invested more than $139.32 million in New Jersey’s freight rail services using TTF funds, leveraging an additional $17.04 million from railroad owners and operators, for a total of nearly $156.4 million in Rail Freight Assistance Program investment.
The Rail Freight Assistance Program, administered by the NJDOT Division of Local Aid, provides funding for capital improvements that result in the continuation of economically viable rail freight services in the state. Grant applications 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; upgrade freight rail trackage to a 286,000-pound load carrying capacity’ and support a safe, efficient, and effective rail freight system in New Jersey.
The New Jersey Rail Freight Assistance Program grants provide funding for up to 90 percent of the estimated cost of each project while the sponsor is responsible for providing the remaining amount. Owners, and/or operators of short line railroads in New Jersey that have an existing use and maintenance arrangement with the owner, may apply. 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. Application proposals are accepted through SAGE, the State’s on-line System for Administering Grants Electronically.
For more information about the Rail Freight Assistance Program or other Local Aid programs go to www.njdotlocalhub.nj.gov; email DOT-LocalAID.ResourceCenter@dot.nj.gov or call 609.649.9395. For NJDOT news follow us on X (Twitter) @NewJerseyDOT, on the NJDOT Facebook page, or Instagram @NewJersey.DOT.