The Local Rail Service Assistance (LRSA) Program was established by the Regional Rail Reorganization Act of 1973 to provide financial support to states for the continuation of rail freight service on abandoned light density lines in the Northeast. The Railroad Revitalization and Regulatory Reform Act of 1976 expanded the program to all states. In 1978 the program was further expanded and amended to allow capital assistance for rehabilitation prior to, rather than after, abandonment. Amendments in 1981 prohibited the use of these funds for operating subsidies. The program was reauthorized in 1989 and renamed the Local Rail Freight Assistance (LRFA) Program.
No new funds are currently available under the LRFA Program.
Program Information
Program Staff
Alice Alexander, Financial Analyst and Grant Manager
Alice.Alexander@dot.gov
202-493-6363
Federal Railroad Administration
Office of Railroad Development
1200 New Jersey Avenue S.E.
Mail Stop 20
Washington, D.C. 20950 |
Closeout and Continuing Obligations
This information is from the standard grant agreement for the LRFA program.
Since the grant being closed might deviate from the standard grant agreement, please refer to the specific agreement for the grant being closed.
Within 90 days after the Grantee makes the last payment or collection, the Grantee shall deliver the Administrator:
- An accounting of funds spent using
- An itemized list of assets.
- A financial compliance audit in accordance with OMB Circular A-133
.
- A final Performance Report.
- A final Request for Reimbursement, if the Grantee does not receive funds by advance payment.
- An accounting for any materials purchase under the Agreement that have not been installed.
The Grantee shall dispose of the uninstalled material in accordance with instruction that the Administrator will provide after receipt of the accounting.
If an audit determines that the allowable costs are less than the amount that has been paid, the Grantee shall pay the difference to the Administrator within 15 days after the determination of allowable cost is final.
If the allowable costs of an entitlement grant exceed the amount that has been paid, the Administrator shall pay the difference to the Grantee up to the maximum set forth in Appendix B of this Agreement within the 15-day period.
The difference between the allowable costs determined under this subsection and the maximum set forth in Appendix B, plus the Federal share of any program income, will remain in the State's entitlement under the close of the entitlement period in which the determination of allowable costs is final.
If the allowable costs of a discretionary grant are less than the maximum set forth in Appendix B, plus the Federal share of any program income, the Administrator will deobligate the difference unless the remaining discretionary funds are approved for another project.
Operating Arrangements and Maintenance
While any property acquired under Section 11.06 of this Agreement is being operated in accordance with the original approved project purpose, the Grantee shall provide for sufficient maintenance to permit continued safe operation and shall ensure that excess revenues are calculated and used in accordance with Section 10.01 of this Agreement, except that no public owner of property shall be entitled to a return on investment.
Rehabilitation or improvement and rail facility construction projects.
The Grantee shall ensure maintenance of the track without any use of Federal funds to the level of the rehabilitation or improvement, or maintenance of the rail facility to the level constructed, for at least the period which is shown by the Grantee's benefit/ cost analysis to be needed for the public benefits of the project to exceed its public costs.
General Federal Government Grants Management
Information, circulars, and forms are located at the Office of Management and Budget Grant Management
web site.
