New York Governor Kathy Hochul has officially awarded more than $101 million in state grants to modernize 25 freight-rail and port infrastructure projects across the state. The funding, provided through the New York State Department of Transportation’s Passenger and Freight Rail Assistance Program (PFRAP), is designed to enhance safety, improve climate resiliency, and bolster regional economic development. By upgrading aging bridges, tracks, and maritime facilities, the initiative aims to reduce highway congestion and lower greenhouse gas emissions by shifting more freight from trucks to fuel-efficient rail and water transport. This investment follows a competitive selection process that prioritizes projects capable of strengthening New York’s global trade footprint while supporting local manufacturing and agricultural sectors.

New York Rail and Port Upgrades: Factsheet

Total Funding: $101.1 Million (awarded Jan 2026)

Grant Program: Passenger and Freight Rail Assistance Program (PFRAP)

Number of Projects: 25

Key Beneficiaries:

LIRR: $20M (Fresh Pond Yard & English Kills Bridges)

NYCSBS: $20M (Hunts Point Electrified Hub & Pier 10 Rehab)

Rochester & Southern Railroad: $5.9M (Oatka Creek Bridge)

Ogdensburg Bridge and Port Authority: $5.6M (Track & Bridge Rehab)

Buffalo & Pittsburgh Railroad: $4.6M (Track & Grade Crossing Improvements)

Strategic Goals: Enhanced safety and bridge clearance modernization.

Electrification of maritime infrastructure.

Reduction of highway congestion and truck emissions.

Support for 286k-pound industry-standard rail cars.

Modernizing Key Metropolitan Transit and Maritime Hubs

A major portion of the funding is dedicated to critical infrastructure in the New York City and Long Island regions. The MTA Long Island Railroad (LIRR) received two $10 million grants for significant bridge modernization. One grant will fund the replacement of the Fresh Pond Yard Bridge in Queens with a modern structure that meets current loading and clearance standards, ensuring the seamless movement of freight via the New York & Atlantic Railway. The second grant will support the rehabilitation of the English Kills Bridge, a vital link to a rail yard in Brooklyn.

Simultaneously, the New York City Department of Small Business Services (NYCSBS) was awarded $20 million for two transformative maritime projects—an investment in the city’s waterfronts that parallels the $3.5B Newark AirTrain overhaul bringing 50,000 riders and a new link to Terminal A. These include the construction of a fully electrified maritime hub in Hunts Point and the rehabilitation of Pier 10 at the Red Hook Container Terminal. These port upgrades are essential for supporting the “Blue Highways” initiative, which leverages New York’s waterways to move goods more sustainably across the harbor.

Statewide Regional Infrastructure Enhancements

The PFRAP grants extend to nearly every corner of the state, targeting short-line railroads and industrial development agencies. In the Finger Lakes and Western New York regions, the Rochester & Southern Railroad was awarded nearly $6 million to replace the Oatka Creek Bridge and upgrade main line ties. The Buffalo & Pittsburgh Railroad will use $4.6 million for extensive track and bridge rehabilitation between Buffalo and the Pennsylvania border.

Economic and Environmental Impact

Beyond physical upgrades, the $101 million investment serves as a “down payment on a greener state,” according to Governor Hochul. By enabling more efficient rail operations, the state expects to remove thousands of trucks from public highways, reducing maintenance costs and improving road safety. The shift to rail is particularly significant for New York’s climate goals, as freight rail is approximately four times more fuel-efficient than trucking. Furthermore, the grants leverage private investment, with several projects including matching funds from railroad operators to ensure long-term viability and competitiveness in the global economy.