A bill to amend the Regional Rail Reorganization Act of 1973 to provide for a more flexible capital structure for the Consolidated Rail Corporation.

Revises the Regional Rail Reorganization Act to allow the Consolidated Rail Corporation to purchase or otherwise receive and hold securities. Decreases the aggregate amount of obligations of the Association which may be outstanding from $1,500,000,000 to $500,000,000.

Authorizes the United States Railway Association to invest in securities of the Corporation. Provides that purchases of debentures and therafter series A preferred stock shall be made by the Association as required and requested by the Corporation. States that any decision by the Corporation not to purchase securities of the Corporation shall be subject to the approval of the Interstate Commerce Commission.

Authorizes the Association to transfer additional rail properties to or from the Corporation within two years following the effective date of the final system plan.

Reduces the number of individuals serving on the Board of Directors from 15 to nine. Provides for the appointment of officers of the Corporation.

Authorizes the Secretary to provide financial assistance for the continuation of local rail services under circumstances set forth in the Act.

Directs the Commission to analyze each rail line of a railroad in reorganization which is not designated to be continued pursuant to the final system plan to determine the actual revenues and costs, charges necessary to achieve economic viability and the prospects of the lines becoming economically viable within a reasonable time.

Increases from $5,000,000 to $6,000,000 the amount authorized to be appropriated to the Commission for use by the Rail Services Planning Office in carry out its functions.