49 CFR § 262.5 - Allocation requirements.

---
identifier: "/us/cfr/t49/s262.5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "49 CFR § 262.5 - Allocation requirements."
title_number: 49
title_name: "Transportation"
section_number: "262.5"
section_name: "Allocation requirements."
chapter_name: "FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF TRANSPORTATION"
part_number: "262"
part_name: "IMPLEMENTATION OF PROGRAM FOR CAPITAL GRANTS FOR RAIL LINE RELOCATION AND IMPROVEMENT PROJECTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "49 U.S.C. 20154 and 49 CFR 1.49."
regulatory_source: "73 FR 39886, July 11, 2008, unless otherwise noted."
cfr_part: "262"
---


# 262.5 Allocation requirements.

At least fifty percent of all grant funds awarded under this section out of funds appropriated for a fiscal year shall be provided as grant awards of not more than $20,000,000 each. Designated, high-priority projects will be excluded from this allocation formula. FRA will adjust the $20,000,000 amount to reflect inflation for fiscal years beginning after fiscal year 2006 based on the materials and supplies component from the all-inclusive index of the *AAR Railroad Cost Indexes.*