Railroad Safety Reauthorization and Improvement Act of 1987

Railroad Safety Reauthorization and Improvement Act of 1987 - Amends the Federal Railroad Safety Act of 1970 to authorize appropriations for FY 1988 and 1989.

Directs the Secretary of Transportation to issue regulations requiring that all: (1) railroad employees responsible for safety-sensitive functions be subject to random-based testing for the use of alcohol or a controlled substance; and (2) locomotives operating on specified passenger trackage or feeder lines be equipped with certain automatic speed control devices.

Directs the Federal Railroad Administration to establish certain grade crossing demonstration projects, and to report to the Congress on the results of such projects.

Amends the Federal Railroad Safety Act of 1970 to make it unlawful for any person (including railroad personnel) to fail to comply with any rules prescribed by the Secretary. Increases the maximum civil penalty for such violations from $2,500 to $10,000 (and $25,000 for specified violations).

Authorizes the Secretary to prohibit an individual from performing safety-sensitive functions if such individual's violation of a rule, regulation, order, or standard is shown to make that individual unfit for such functions.