US DOT Obligates $550M for North Carolina's S-Line Passenger Rail

The U.S. Department of Transportation has obligated $550 million for a new passenger rail line connecting Richmond, Virginia, and Raleigh, North Carolina. The Federal Railroad Administration formalized the commitment Thursday through a written, project-specific agreement with the North Carolina DOT.

The S-Line project will allow train speeds of up to 110 mph on portions of the route, according to the North Carolina DOT. Once complete, it could reduce travel time between Richmond and Raleigh by up to 90 minutes, per the US DOT.

The funding builds on earlier commitments. The North Carolina DOT received a nearly $1.1 billion grant for the project under the Biden administration, and Amtrak and NC DOT will contribute an additional 20% in matching funds.

What is the S-Line?

The corridor runs along a CSX-owned freight rail line. North Carolina and Virginia have already purchased the right-of-way for a portion of the line between Petersburg, Virginia, and Raleigh, and officials broke ground on the project in 2024 in Raleigh.

Beyond speed, the project addresses capacity. It will relieve congestion on existing freight rail corridors and let North Carolina and Virginia schedule more frequent passenger train trips, according to the NC DOT.

A second corridor in the works

Thursday's announcement follows another major rail investment in the state. In April, the US DOT awarded nearly $300 million for the Piedmont Corridor between Raleigh and Charlotte. That money will eliminate nine grade crossings, install double track segments and improve trespassing prevention.

FRA Administrator David Fink tied the two projects together in a statement.

"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," Fink said. "Through close collaboration, we are delivering vital investments that will modernize passenger rail and create a new Golden Age of Rail for the people of North Carolina."

What does this change for towns along the route?

Planners are treating the rail line as more than a track between two capitals. The NC DOT is leading transit-oriented development planning along a 95-mile section of the corridor that includes:

• Apex
• Franklinton
• Henderson
• Norlina
• Raleigh
• Sanford
• Wake Forest
• Youngsville

That planning extends to community mobility hubs in each city. The hubs would enable multimodal transportation, first- and last-mile connections and bike parking, according to the department.

For smaller towns like Norlina and Franklinton, the hubs represent a chance to anchor new development around stations rather than simply hosting passing trains. For Raleigh and Richmond travelers, the payoff is measured in minutes — up to 90 of them saved on a single trip.