Federal Railroad Administration:
Railroad Rehabilitation and Improvement Financing Program--Revisions
OGC-00-42, Jul 18, 2000
Pursuant to a legislative requirement, GAO reviewed the Federal Railroad Administration's (FRA) new rule on financing railroad rehabilitation. GAO noted that: (1) the final rule would implement the Railroad Rehabilitation and Improvement Financing Program to provide direct loans and loan guarantees to state and local governments, government-sponsored authorities and corporations, railroads, and joint ventures that include at least one railroad; (2) the aggregate unpaid principal amounts of direct loans and loan guarantees made under this program cannot exceed $3.5 billion at any one time and not less than $1 billion is to be available solely for projects benefiting freight railroads other than Class I carriers; and (3) FRA complied with applicable requirements in promulgating the rule.