Redesignates paragraphs (1)–(3) as (2)–(4) and inserts a new paragraph (1) requiring the Secretary to give priority to projects that install or upgrade infrastructure to enable high-performance passenger rail along new or existing corridors regardless of location within the United States.

Modifies subclauses in the cost-benefit analysis provision, adjusting punctuation in subclauses (IV) and (V) and adding a new subclause (VI) requiring consideration of anticipated positive impacts of the project's efforts to electrify the corridor or make improvements to allow for electrification infrastructure in the future.

Adds paragraph (14) to expand eligibility to include a Class I railroad company only if conditions (A)–(E) are met: use funds to install electrification infrastructure; use project labor agreements; include enforceable agreements to hire from local communities; comply with section 22404 of title 49; and partner with at least one entity described in paragraphs (1)–(5).

Adds subsection (17) enumerating eligible activities for zero-emission locomotive infrastructure projects, including electrifying publicly- or Amtrak-owned routes; rehabilitating locomotives to reduce emissions; purchasing infrastructure/right-of-way to expand passenger/regional rail or with intent to electrify; building electrified corridors; electrifying rail yards; leasing/acquiring easements for electrification; purchasing electrification equipment and zero-emission rolling stock; ensuring climate-resilient electrification infrastructure; and community engagement.

Rewrites subsection (d) to prescribe the application form and manner, require each application to include a workforce transition plan addressing skills gaps, insourced operation/maintenance plans, avoidance of displacement, mitigation steps, and coordination with workforce organizations; and for rail electrification projects require plans for early robust community engagement, hiring from local/ displaced/tribal/environmental justice communities, and wage and apprenticeship descriptions.

Redesignates paragraphs (2) and (3) as (3) and (4) and inserts a new paragraph (2) that requires the Secretary, when selecting grant recipients, to give priority to proposed projects that include electrification infrastructure in freight railyards or corridors in environmental justice communities and along new or existing rail corridors.

Adds subsection (g) permitting Amtrak or States, unless prohibited by law or inconsistent with a grant agreement, to use Federal grant funding received from the Federal Government to cover any non-Federal share of costs required under grant programs authorized in title 23 or 49 or other Federal laws to the extent necessary to advance critical intercity passenger rail investments.

Redesignates subparagraphs (B) and (C) as (C) and (D) and inserts a new subparagraph (B) requiring that at least one-half of the funds set aside each fiscal year under subparagraph (A) be available for installation of protective devices at railway-highway crossings.