The "All Aboard Act of 2025" proposes a comprehensive overhaul and expansion of the United States rail system, with a strong emphasis on sustainability and modernization. It establishes a new State rail formula grant program to provide $3.5 billion over five years, enabling states to develop rail plans, operate services, and maintain or expand infrastructure. A key goal of these grants is to support the transition to zero-emission locomotives by 2047, with interim targets including 50 percent zero-emission trains by 2030 and all new trains by 2035.

The bill also creates a Green Railroads Fund, authorizing $50 billion over five years for competitive grants to eligible entities for electrified rail operations. These grants will fund projects such as installing electrification infrastructure, purchasing electric rolling stock, and rebuilding existing locomotives for electrification, prioritizing those that reduce air pollution in environmental justice communities and expand high-performance passenger rail. Applications for these funds require robust public engagement, environmental impact plans, and detailed workforce transition strategies, including commitments to project labor agreements and local hiring.

Significant investments are directed towards passenger rail expansion, with $80 billion authorized for the Federal-State Intercity Partnership program and $30 billion for Amtrak, including $5 billion specifically for climate resiliency improvements. The Consolidated Rail Infrastructure and Safety Improvement (CRISI) program receives $30 billion, with expanded eligibility for Class I railroads undertaking electrification projects and new eligible activities focused on zero-emission infrastructure. Additionally, $10 billion is allocated for the Railroad Crossing Elimination Program and $1 billion for the Restoration and Enhancement Program.

To address environmental concerns, the bill authorizes $500 million for an EPA-administered rail air pollution grant program targeting emissions from railyards. Furthermore, it mandates labor protections, including prevailing wage requirements for projects, and establishes Passenger Rail and Freight Rail Workforce Training Centers with $500 million in funding. These centers will develop standards-based training, apprenticeship programs, and curricula for new rail technologies, ensuring a skilled workforce for the modernized rail system.