Why the Obama administration is paying off railroads for rail upgrades

Railroads are getting billions in federal stimulus payments, but the administration is also giving them a $5.2 billion grant that will help train companies keep up with the increasing number of trains on the rails.

The White House announced the stimulus package on Thursday and it will help to pay for upgrades on the nation’s rail network, which are needed to handle a growing number of travelers.

The money will cover upgrades to the nation, the Federal Railroad Administration said in a statement.

The government will match the money up to $10 million in grants that will cover costs of construction, equipment and supplies, the statement said.

The Obama administration will award the money on behalf of private companies that are already participating in the stimulus program.

The $5 billion will be split evenly between railroads and public transit agencies.

It is unclear whether the funds will be used for trains in the next fiscal year, which starts Oct. 1.