American High-Speed Rail Act

The American High-Speed Rail Act amends federal rail law to expand high-speed rail corridor development, increase federal funding, and update definitions and requirements for high-speed and higher-speed rail projects. It also adds provisions for advance acquisition of property, freight rail right-of-way acquisition, labor protections, and workforce development.

Sec. 2, Amendments to high-speed rail assistance provisions: This section makes several changes to chapter 261 of title 49. It increases the federal share for corridor planning grants to up to 100 percent and requires the Secretary to prioritize projects where at least 20 percent of costs come from specified financial sources, such as the Railroad Rehabilitation and Improvement Finance program or state, local, or private sources. It adds new factors for grant consideration, including equity, resilience, sustainability, economic development, and climate impacts, as well as the potential to serve an eligible place. It allows up to 20 percent of grants under sections 26101 and 26106 to be used for higher-speed rail projects (sustained speeds of more than 110 mph but less than 186 mph). It also updates safety regulations to require comprehensive, performance-based rules that do not inhibit interoperability, and allows the Secretary to consider technologies that facilitate intermodal connections. For corridor development, the Secretary may designate high-speed rail corridors, and eligible recipients now include consortia of private entities and public agencies. The federal share of net capital costs may be up to 100 percent, with priority for projects where at least 20 percent of costs come from specified financial sources. The Secretary of State must provide Presidential permits for projects at international borders unless national security is at risk.

Sec. 3, Authorization of appropriations: This section authorizes $3 billion per year for fiscal years 2027 through 2031 for high-speed rail corridor planning (section 26101), $3 billion per year for technology improvements (section 26102), and $35 billion per year for corridor development (section 26106). No more than 20 percent of total funds under sections 26101 and 26106 in a fiscal year may be spent on higher-speed rail projects.

Sec. 4, Pilot program for transit-oriented development planning: This section amends the Moving Ahead for Progress in the 21st Century Act to require the Secretary to give greater consideration to communities where high-speed rail corridor development projects are proposed. It authorizes $20 million per year for fiscal years 2027 through 2031 for this program.

Sec. 5, Payments of credit risk premiums: This section allows amounts provided under certain appropriations acts (including the 2016 and 2018 DOT appropriations acts) to be used to pay credit risk premiums under the Railroad Rehabilitation and Improvement Finance program.

Sec. 6, Acquiring freight train right-of-way: This section adds a new section 26107 to title 49, allowing rail carriers to sell, lease, or grant easements on real property to recipients of grants under sections 26101 or 26106. The Secretary must make grants to the rail carrier for acquiring additional real property along the right-of-way, not exceeding the amounts received from the sale, lease, or easement. Gains from such transactions and grant amounts are excluded from gross income for tax purposes, as are capital improvements made by grant recipients on the rail carrier's property.

Sec. 7, Labor protections and workforce development: This section amends section 22905 of title 49 to deem operators and certain contractors performing passenger or freight rail operations or support work on federally funded rail infrastructure as rail carriers and employers for purposes of the Railroad Retirement Act, Railway Labor Act, and Railroad Unemployment Insurance Act. However, building and construction contractors are not considered rail carriers solely for performing construction work, and contractors or subcontractors performing work under a collective bargaining agreement with a railroad or operator may use employees not covered by those acts.