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FRA Reissues Fed-State Funds NOFO

September 26, 2025

FRA Reissues Fed-State Program Notice of Funding Opportunity; Attempts to Redirect California HSR Funds

by Sean Jeans-Gail, VP of Government Affairs

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The Federal Railroad Administration (FRA) issued a $5 billion Notice of Funding Opportunity (NOFO) for the National Railroad Partnership Program—an apparent rebranding of the Federal-State Partnership for Intercity Passenger Rail (FSP). The NOFO would redirect $2.4 billion previously awarded to California’s high-speed rail project.

The NOFO includes $2.4 billion that the FRA is attempting to claw back from the California high-speed rail corridor currently under construction in the Central Valley—a decision that the California High-Speed Rail Authority is currently challenging in court.

“The FRA’s decision to terminate federal funding for California high-speed rail was unlawful, unwarranted, and is being challenged in federal court,” said Micah Flores, a spokesman for the Authority. “Now, their attempt to redirect a portion of that funding, currently the subject of litigation, is premature. The Authority has been prepared for this possibility and will take imminent legal action to block this misguided effort by the FRA.”

The FSP program funds projects that reduce the state of good repair backlog, improve performance, or expand or establish new intercity passenger rail service. This NOFO will also include funds from a NOFO issued by FRA under the Biden Administration in 2024 that were never awarded. The press release issued by the USDOT criticized the Biden Administration for a focus on “diversity, equity, and inclusion requirements”.

The announcement also stated that the NOFO will emphasize highway-rail grade crossing safety and supporting projects that align with the Trump Administration’s “focus on the American family.”

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