Congress funds rail expansion while quietly cutting taxes for freight carriers
H.R. 9036 — American High-Speed Rail Act · Filed by Seth Moulton (D-MA) · 54 cosponsors · Introduced May 26, 2026 · Referred to committee
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What it does
This bill authorizes $61 billion over five years (2027–2031) for high-speed and higher-speed rail corridor planning, technology, and development. It allows federal funding to cover up to 100% of corridor planning costs and prioritizes projects with at least 20% non-federal matching funds from state, local, private, or international sources. The bill also creates labor protections requiring contractors on federally funded rail projects to comply with railroad labor laws (Railroad Retirement Act, Railway Labor Act, Railroad Unemployment Insurance Act) and permits advance acquisition of right-of-way before environmental reviews are complete.
Why we flagged it
The bill's core function is authorizing federal funding for high-speed rail development and establishing labor standards for federally funded projects. While framed as infrastructure modernization, it contains a significant labor-law carve-out (Section 7) that may narrow the scope of who must comply with railroad labor protections.
- Section 6 allows freight rail carriers to exclude from taxable income gains from selling/leasing right-of-way to passenger rail projects and grants received for acquiring adjacent property. This is substantively unrelated to passenger rail development and appears to be a tax benefit for private freight operators.
- Section 7 creates a narrow exemption allowing construction contractors (not historically railroad workers) to avoid Railroad Retirement Act and Railway Labor Act coverage if work is performed under a collective bargaining agreement. This carve-out narrows labor protections and is tangential to the bill's stated rail-development purpose.
What the text implies
- Advance acquisition of right-of-way before environmental reviews are complete (Section 2, subsection on 'Advance acquisition') may accelerate land acquisition and reduce opportunities for public input on environmental impacts, potentially disadvantaging communities in project corridors.
- The 20% cap on 'higher-speed rail' grants (110–186 mph) may limit investment in truly high-speed rail (186+ mph) in favor of lower-cost intermediate-speed projects, reducing long-term transportation modernization benefits.
The full analysis lists 5 implications of this text.
Who stands to gain
Freight rail carriers (tax benefits on right-of-way sales); Construction and engineering firms (corridor planning and development contracts); Rail equipment manufacturers (technology improvements funding)