US DOT obligates $550M for North Carolina's S-Line rail corridor

The Federal Railroad Administration has obligated $550 million to North Carolina's S-Line passenger rail project. The state transportation department says the work will relieve congestion on existing freight corridors and let North Carolina and Virginia schedule more frequent passenger trains.

The obligation carries a written, project-specific agreement between the US DOT and the North Carolina Department of Transportation, Construction Dive reported. That step converts a federal award into a commitment tied to a defined scope.

The S-Line is a CSX-owned freight rail line. North Carolina and Virginia purchased the right-of-way for a portion of the route between Petersburg, Virginia, and Raleigh, and broke ground on the project in Raleigh in 2024. Buying the ground from the freight owner is the part of corridor development states can transact directly, a point this publication has made about rail ownership.

The S-Line obligation follows the US DOT's April award of nearly $300 million to the Piedmont Corridor between Raleigh and Charlotte by about six months. That award covers eliminating nine grade crossings, installing double-track segments and improving trespassing prevention. At $550 million, the S-Line obligation is roughly 1.8 times the April Piedmont award.

“This milestone is a testament to the strong partnership between the [Federal Railroad Administration], Amtrak, and NCDOT in advancing the S-Line and the earlier announced Piedmont Line corridors,” FRA Administrator David Fink said in a statement.

Together with the April award, the two North Carolina commitments reported this year come to close to $850 million.