As predicted by many at Railway Interchange last year, the Trump administration is bringing political changes that will significantly impact transportation funding.

Ahead of this year’s event, we spoke with two Railway Interchange speakers, Husein Cumber, senior advisor, Brightline Holdings, and Robert Pearsall, partnerships director at U.S. High Speed Rail, to understand the current state of passenger and transit funding and how leaders should position their organizations in this new environment.

What are the most significant political changes impacting transportation funding that stakeholders should be aware of?

Husein Cumber: Each administration brings expected change to funding and policy that requires all of us to adapt and react. In less than 100 days, two things are apparent: the administration demands a return on investment for any project receiving taxpayer dollars; secondly, they want to see projects that have a clear path for completion.

In the past, projects have received the benefit of the doubt that they’ll be built in a timely manner while providing a public benefit. Now, we’re hearing, “Prove it.” This is a good thing and will ensure the best projects rise to the top.  

We’ve also seen this administration move swiftly to reward large-scale investments by removing red tape that typically delays critical infrastructure. President Trump is a developer who wants to incentivize investment and has signaled from his first day in office that he intends to cut red tape. Historically, this process causes delays, adds cost, and leads to uncertainty. A streamlined process that takes a set amount of time will likely motivate more private sector involvement and eliminate public skepticism that big infrastructure and transportation projects will get done. Again, this is a great thing that will ensure the best projects are prioritized.  

Robert Pearsall: The Trump administration is pulling back a lot of federal funding for high-speed rail (HSR) and other transit projects. In the HSR space for example, Department of Transportation Secretary Duffy and other administration officials have expressed public support for the Brightline West (mostly) private capital model for similar projects. The recent news of the Kleinheinz Equity investment in the Texas Central project is another indication that a similar model might get federal support.

How might these changes influence the future of passenger and transit funding? 

Husein Cumber: I think one of the biggest changes will be how this particular administration evaluates projects seeking discretionary grant funds. Beyond understanding the public benefit and return on investment, they want to know exactly how it will be built and paid for. In short, projects and entities vying for competitive grants must leave any guesswork out of the equation. Viable projects will be required to show a complete funding plan from start to finish because it is clear that this administration will not be supportive otherwise.

Robert Pearsall: States such as California will try to rely on state funding for its HSR rail projects and perhaps others in the transportation space.

What are some potential long-term implications that rail leaders need to be aware of in this arena? Is there any action that can/should be taken?  

Husein Cumber: All of these changes should be seen as an opportunity; we ought to lend our experience and expertise to these policy discussions. For example, our industry has been asking for a more definitive environmental review process for decades. We should be thinking about ways we can impact these adjustments.

As we look to kickstart high-speed rail, we have focused our efforts on utilizing existing transportation corridors like highways and freight systems. When you think about it, roadways and freight corridors should expedite the environmental review process even more because they are already environmentally studied and impacted. Our industry should come to the table with bold plans to change the environmental process and push for categorical exclusions for any project built within existing transportation corridors.  

Robert Pearsall: Continue to work with policymakers and stakeholders on short- and long-term planning. Plan slow, build fast. It’s important to build community support from the outset, too.

What strategies can the transportation industry adopt to navigate the new funding landscape?

Robert Pearsall: Build local and support your state. Avoid pitfalls of focusing on DEI-related elements of a project. Focus on the economic impacts of transportation projects. I made this case in Dallas at the 21st Southwestern Rail Conference to invest in the Texas Triangle, with some helpful data from the Texas Department of Transportation.

In any new political environment, be creative with your strategies. Look for opportunities to build bipartisan support. At U.S. High Speed Rail, we’re working closely with Republicans on permitting reform for all HSR projects, because Republicans will advance permitting reform in other areas such as energy projects. The current administration is amenable to streamlining and cutting red tape, which we see as an important opportunity that will help speed up HSR projects.

On Wednesday, May 21, Cumber and Pearsall will be joined onstage by Benji Schwartz, director of government affairs and advocacy at APTA, and Greg Regan, president, transportation trades department, AFL-CIO (TTD), during their session titled, “Adapting to Change: Navigating Passenger Rail Funding in the New Political Landscape.” Learn more and register for Railway Interchange today.

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The Passenger Rail Advisory Committee (PRAC), formed in the fall of 2024 under the Surface Transportation Board (STB), is an exciting development for the future of passenger rail in the United States. The committee, comprised of 21 individuals representing the rail industry across the country, is filled with enthusiasm and a shared commitment to make meaningful changes in the industry. We are eager to work together and use our collective expertise to drive progress.

Early this year, the committee identified its top five priorities: liability, on-time performance, collaboration between passenger and freight rail, Amtrak’s role, and technology as it relates to current uses and opportunities.

These priorities are crucial for the advancement of passenger rail and are being tackled by four dedicated subcommittees, with initial considerations outlined below:

1. Joint Operations: This group is exploring how to expand passenger rail in collaboration with freight operations. This involves identifying mutually beneficial opportunities and the potential to convert unused freight assets into passenger rail assets.
2. Expansion: This group is focused on breaking down the siloed approach to passenger rail, supporting the industrial base for passenger rail in the U.S., and considering the possibility of small-scale startup opportunities.
3. Current State: This group will explore ways to homogenize passenger rail, similar to freight rail, to improve system quality and passenger experience. Flexibility and adaptability will be key to enhancing service.  
4. Liability: This group is addressing the costs of insurance, identifying ways to lower liability caps, and making insurance more affordable to encourage freight rail carriers to host passenger services.

Looking outward, a recent report from Amtrak’s Office of Inspector General highlights the rail line’s responsiveness to car builders’ concerns, though more resources are needed to keep program timelines on track. Initiatives like the Department of Transportation’s Corridor ID program, which promotes planning for new passenger rail corridors, are crucial as well. Funding for future corridor research and development can lay the groundwork for new services, supporting suppliers through the procurement of new railcars.

Federal funding in this space remains a critical need. Reliable, long-term funding sources, such as the Federal-State Partnership for Intercity Passenger Rail (FSP) Grant Program, support the replacement and refurbishment of rolling stock.

In speaking with Husein Cumber, fellow committee member and chief strategy officer of Florida East Coast Industries, on the current state and opportunities, he shared the following:

“President Trump has discussed the lack of first-class infrastructure in the U.S. and the need for private sector investment in the industry. I do not believe that these positions have changed. However, this administration will not want to make incremental investments in projects. If a project cannot clearly show the full funding plan, then it will not be competitive with discretionary grant programs. Incremental funding has been the biggest challenge since it does not force project sponsors to engage all funding stakeholders on day one, and the project cost continues to increase as the funding timeline gets elongated. We need the first true high-speed rail project to be completed and put into operation, and then the industry will have a chance to mature.”

While the path ahead will come with challenges, the PRAC is poised to make significant strides in the passenger rail industry. Our collective enthusiasm and dedication to addressing these key issues promise a bright future for passenger rail. Together, we are committed to creating a more efficient, collaborative, and innovative rail system that benefits all stakeholders.

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But this momentum can’t be taken for granted. Continued investment and development are key to realizing the full potential of passenger rail in the U.S.

Progress So Far: Laying the Foundation

One notable development is the Federal Railroad Administration’s (FRA) Corridor Identification Program (Corridor ID). Introduced as part of the Bipartisan Infrastructure Law in 2021, this program has provided localities with grants to research and plan future intercity passenger rail routes. With $8.2 billion awarded for passenger rail projects and 69 corridors selected for future service planning, the groundwork for expanding rail service is already underway. The Corridor ID program represents a critical step forward, enabling regions to plan for a more connected future.

Amtrak also saw a banner year, reporting record ridership of 32.8 million passenger trips and an increase in total operating revenue, up 7% from 2023. “These numbers highlight the growing demand for efficient rail travel. The fact that ridership is at an all-time high sends a clear message: the appetite for passenger rail is stronger than ever,” says Matthew Delaney, government and public affairs manager for RSI. “Now is the time to lean in to progress and continue forward momentum as passenger rail realizes its full potential in the U.S.”

The Economic and Social Value of Rail Investment

Investing in passenger rail offers far-reaching benefits. According to the American Public Transportation Association (APTA), for every $1 billion invested in high-speed rail, 24,000 jobs are created across various sectors. Beyond urban centers, the impact of these investments extends into rural areas, creating jobs and revitalizing local economies. Additionally, APTA has found that for every $1 invested in public transportation, $5 is generated in economic returns, amplifying the broader value of these projects for cities and states.

These economic gains go hand-in-hand with passenger rail’s ability to interconnect regions, fostering economic opportunities that would otherwise be out of reach. As new rail corridors emerge, cities and smaller towns alike gain access to broader markets, increased tourism, and improved mobility for workers and businesses. The ripple effects of rail investments cannot be overstated, touching nearly every part of the economy.

Risks of Stalling Progress

Despite positive developments, there is still a risk of stalling if investments and support wane. Halting progress now would not only squander economic and environmental benefits, but also leave the U.S. lagging behind countries like Japan and much of Europe, where frequent intercity rail service is the norm. The U.S. would miss out on opportunities to create more resilient transportation systems.

Failing to build on the successes of the past few years could leave newer corridors struggling to reach their full potential. For instance, Amtrak’s Chicago to Minneapolis route, which exceeded ridership expectations, shows that with the right investment, rail can be viable and profitable across the country. The route is one of the few outside the Northeast corridor to operate at a profit, making it a critical success story for future rail development.

Addressing Spending Efficiency and Long-Term Strategies

One of the ongoing challenges in passenger rail is ensuring spending efficiency. Budget overruns and project delays are issues that need to be addressed at a systemic level. Improving procurement processes, streamlining regulatory frameworks, and fostering greater collaboration between federal, state, and private entities are essential steps to ensure dollars are used effectively.

Looking ahead, the concept of the “Goldilocks Zone” offers a strategic focus for future rail investments. This refers to distances between 150 and 500 miles—too short to fly but too long to drive comfortably. Rail is ideally suited for these distances; if the U.S. can successfully develop routes within this zone, it could prove the viability of expanded rail networks in other regions. Corridors like Chicago to Minneapolis already demonstrate how effective rail can be in this range, offering convenient, more sustainable alternatives to driving or flying.

RSI’s Commitment to Passenger Rail

RSI recognizes the potential in passenger rail, for reasons mentioned above and more. Recently, the association developed a Passenger Rail Working Group, led by Marc Buncher (chair), president and CEO of Siemens Mobility North America, and Chris Zappi (vice chair), senior director of global strategy and marketing at Wabtec. This group formally kicked off in 2024 and will build on the progress RSI has made in this space throughout 2025.

“We see great potential in the passenger rail space, not only because of the economic benefits it will bring to the U.S., but because of the impressive knowledge and experience our network of freight experts can bring to the table,” says Patty Long, president of RSI.

Throughout 2024, RSI has been engaging in the passenger rail space, making connections at industry events, including InnoTrans 2024 in Berlin, and creating strategic partnerships with Amtrak, APTA, Metra, Chicago Transit Authority, U.S. Coalition for High Speed Rail, Coalition for the Northeast Corridor, and many others. At its annual event, RSI debuted its first-ever passenger rail education track, attracting new participants and featuring speakers from RSI members and key stakeholders.

“This step forward with passenger rail marks a new, exciting era for RSI,” Buncher says. “It truly makes the association a leader for the rail ecosystem at large. There is such a wealth of expertise within our current membership of freight supply companies; I am confident that together there is much progress we can make.”

The Road Ahead

U.S. passenger rail is on the right track, but still in its early stages. Record ridership, successful new routes, and investments through programs like Corridor ID highlight the untapped potential of rail. But sustaining this momentum will require continued focus, collaboration, and investment. “More passenger rail means more jobs, economic growth for communities, and mobility that improves quality of life—and less traffic! The rail industry can’t afford to miss the opportunity to demonstrate the value that passenger rail delivers to the nation,” Zappi says.

The post The Evolution of U.S. Passenger Rail: Why Progress Matters appeared first on RSI.

With advocacy experience including stints on Capitol Hill and with the Washington Metropolitan Area Transit Authority (WMATA), Delaney brings a broad and dynamic perspective to the RSI team. His knowledge will bolster the organization’s efforts to foster meaningful dialogue with policymakers and advocate for policies that enhance the competitiveness and growth of the passenger rail sector. 

“We are thrilled to welcome Matthew to RSI. His passion for public policy and understanding of the key issues related to this sector will be invaluable in championing the interests of our members as we continue to expand our efforts in passenger rail,” said Marc Buncher, President and CEO of Siemens Mobility North America, who will serve as Chairman of the RSI Passenger Rail Working Group. “The RSI has been laying the groundwork for this committee with key constituents since May of 2024.  We are excited to spearhead this much needed effort for both RSI members and the broader ecosystem of passenger rail.” 

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