Title 49 — TransportationRelease 119-73
§22106 Limitations on financial assistance
Title 49 › Subtitle SUBTITLE V— - RAIL PROGRAMS › Part PART B— - ASSISTANCE › Chapter CHAPTER 221— - LOCAL RAIL FREIGHT ASSISTANCE › § 22106
Summary
Require states to use federal rail project money to give grants or loans to the owner of rail property or to a rail carrier working on the project. States must put the U.S. Government’s share of any repaid money and any recovered contingent interest into an interest-bearing account, treat that money and its interest as state funds, and use it for more similar grants and loans. States must also try, as much as possible, to get shippers, rail carriers, and local communities to help pay the state’s share of costs.
Full Legal Text
Title 49, §22106
Transportation — Source: USLM XML via OLRC
(a)A State shall use financial assistance for projects under this chapter to make a grant or lend money to the owner of rail property, or a rail carrier providing rail transportation, related to a project being assisted.
(b)The State shall place the United States Government’s share of money that is repaid and any contingent interest that is recovered in an interest-bearing account. The repaid money, contingent interest, and any interest thereon shall be considered to be State funds. The State shall use such funds to make other grants and loans, consistent with the purposes for which financial assistance may be used under subsection (a), as the State considers to be appropriate.
(c)To the maximum extent possible, the State shall encourage the participation of shippers, rail carriers, and local communities in paying the State share of assistance costs.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Pub. L. 103–272 Revised SectionSource (U.S. Code)Source (Statutes at Large) 22106(a)49 App.:1654(d)(1), (2).Oct. 15, 1966, Pub. L. 89–670, 80 Stat. 931, § 5(d), (i); added Feb. 5, 1976, Pub. L. 94–210, § 803, 90 Stat. 130; Nov. 8, 1978, Pub. L. 95–607, §§ 102–106(a), 107– 109(a), 92 Stat. 3059, 3062; Oct. 12, 1979, Pub. L. 96–86, § 115(b), 93 Stat. 662; Aug. 13, 1981, Pub. L. 97–35, §§ 1191, 1192, 95 Stat. 699; Jan. 14, 1983, Pub. L. 97–468, § 501, 96 Stat. 2551; Apr. 7, 1986, Pub. L. 99–272, § 4018, 100 Stat. 111; restated Dec. 11, 1989, Pub. L. 101–213, § 2(a), (c), 103 Stat. 1843, 1845, 1847. 22106(b)49 App.:1654(d)(3) (1st, 2d sentences). 22106(c)49 App.:1654(d)(3) (3d, last sentences). 22106(d)49 App.:1654(d)(4). 22106(e)49 App.:1654(i). In subsection (a), the words “financial assistance for projects under this chapter” are substituted for “assistance provided under subsection (b) of this section” for clarity. The words “rail carrier providing rail transportation” are substituted for “operator of rail service” for consistency in the revised title. The word “conditions” is omitted as being included in “terms”. The words “Secretary of the Treasury” are substituted for “Department of the Treasury” because of 31:301(b). In subsection (b), the words “in the same manner and under the same conditions as if they were originally granted to the State by the Secretary” are omitted as unnecessary. In subsection (e)(2), the words “assistance under this chapter” are substituted for “Federal assistance” for clarity and consistency in this chapter. Pub. L. 104–287This amends 49:22106(b) to clarify the restatement of 49 App.:1654(d)(3) by section 1 of the Act of July 5, 1994 (Public Law 103–272, 108 Stat. 897).
Editorial Notes
Amendments
2015—Subsec. (b). Pub. L. 114–94 substituted “interest thereon” for “interest thereof”. 2008—Subsec. (a). Pub. L. 110–432, § 701(a)(1), struck out last sentence which read as follows: “The State shall decide on the financial terms of the grant or loan, except that the time for making grant advances shall comply with
Regulations
of the Secretary of the Treasury.” Subsec. (b). Pub. L. 110–432, § 701(a)(2), added subsec. (b) and struck out former subsec. (b). Prior to amendment, text read as follows: “The State shall place the United States Government’s share of money that is repaid in an interest-bearing account. However, the Secretary of Transportation may allow a borrower to place that money, for the benefit of the State, in a bank designated by the Secretary of the Treasury under section 10 of the Act of June 11, 1942 (12 U.S.C. 265). The State shall use the money and accumulated interest to make other grants and loans under this chapter in the same manner and under the same conditions as if they were originally granted to the State by the Secretary of Transportation.” Subsecs. (c), (d). Pub. L. 110–432, § 701(a)(3), redesignated subsec. (d) as (c) and struck out former subsec. (c). Text of former subsec. (c) read as follows: “The State may pay the Secretary of Transportation the Government’s share of unused money and accumulated interest at any time. However, the State must pay the unused money and accumulated interest to the Secretary when the State ends its participation under this chapter.” Subsec. (e). Pub. L. 110–432, § 701(a)(3), struck out subsec. (e). Text read as follows: “Each State shall retain a contingent interest (redeemable preference shares) for the Government’s share of amounts in a rail line receiving assistance under this chapter. The State may collect its share of the amounts used for the rail line if— “(1) an application for abandonment of the rail line is filed under chapter 109 of this title; or “(2) the rail line is sold or disposed of after it has received assistance under this chapter.” 1996—Subsec. (b). Pub. L. 104–287 inserted “in the same manner and under the same conditions as if they were originally granted to the State by the Secretary of Transportation” after “under this chapter”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2015 AmendmentAmendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.
Effective Date
of 1996 AmendmentAmendment by Pub. L. 104–287 effective July 5, 1994, see section 8(1) of Pub. L. 104–287, set out as a note under section 5303 of this title.
Reference
Citations & Metadata
Citation
49 U.S.C. § 22106
Title 49 — Transportation
Last Updated
Apr 6, 2026
Release point: 119-73