Local Rail Service Reauthorizing Act

(Measure passed House, amended)

Local Rail Service Reauthorizing Act - Amends the Department of Transportation Act regarding local rail service assistance to authorize appropriations for FY 1989.

Decreases the Federal share of rail service assistance program costs from 70 percent to 50 percent. Provides that the Federal share of costs to rehabilitate rail properties for the purpose of facilitating rail freight service shall be 70 percent.

Amends the eligibility criteria for Federal assistance to abandoned railroad lines to provide that such lines will be eligible if the Interstate Commerce Commission (ICC) authorizes (or exempts from the requirement of authorization) the abandonment or discontinuance of service regarding such lines.

Extends the period in which States are eligible to receive rail service assistance to September 30, 1988. Declares that as of October 1, 1988, appropriations for State rail service assistance (except those to which each State is entitled) will be made available to the Secretary of Transportation for projects. Reduces from $100,000 to $36,000 the State entitlement for rail plan expenditures.

Directs the Secretary the establish procedures to ensure that funds for rail service assistance projects are distributed by April 1 of the fiscal year for which they are appropriated and to report to the Congress on the status of such funds if they are not distributed by such date.