Panel hears bill to establish state rail plan framework so Nebraska can compete for federal rail dollars

Sen. Margot Juarez introduced LB1098 to adopt a state rail plan act that designates the Nebraska Department of Transportation as the state rail authority and directs NDOT to prepare, maintain and submit a state rail plan consistent with federal guidance. Juarez said Nebraska’s last comprehensive rail planning dates to 2003 and that updating the plan is necessary to compete for federal grants and to coordinate passenger and freight opportunities.

Proponents from ProRail Nebraska and passenger‑rail advocacy groups said a current state rail plan is the first step to attracting federal funds and integrating passenger service options (for example, Omaha–Lincoln corridors). Matthew Roque of ProRail Nebraska said the plan would not itself mandate specific projects or funding; it would set priorities, inventory lines needing upgrades and identify coordination strategies.

Committee members asked about financing and who bears the costs of rail projects. Witnesses noted many passenger services operate on existing freight lines, that federal and user funding commonly cover construction and operations, and that states often leverage federal grants for capital costs. Questions also focused on rail ownership (Union Pacific and other freight owners) and the need for NDOT to coordinate with private rail owners and regional stakeholders.

Sen. Juarez said the bill prioritizes planning, public engagement and transparency (including legislative notifications and an approval step involving the governor) and does not commit the state to construction. The hearing concluded with proponents urging the committee to advance a planning framework to avoid leaving federal dollars on the table.