Railroad Track Modernization Act of 2001

Railroad Track Modernization Act of 2001 - Amends Federal rail transportation law to direct the Secretary of Transportation to establish a program of capital grants to class II and class III railroads (or with the concurrence of such railroads, to a State or local government) to rehabilitate, preserve, or improve railroad track (including roadbed, bridges, and related track structures) used primarily for freight transportation to a standard to ensure that it can be operated safely and efficiently and accommodate 286,000 pound rail cars.

Declares that the Federal share of costs for such projects shall be 80 percent.

Sets forth certain grant and project requirements.

Authorizes the Secretary to also make grants to supplement direct loans or loan guarantees (including for paying credit risk premiums, lowering rates of interest, or providing for a holiday on principal payments) for projects primarily benefitting non-class I freight railroad carriers.

Sets forth certain employee protection and prevailing wage requirements with respect to projects financed by such grants.

Directs the Secretary to study and report to Congress on such projects to determine the public interest benefits associated with the light density railroad networks in the States and their contribution to a multimodal transportation system.

Authorizes appropriations for FY 2002 through 2004.