A bill to provide preemptive option and financial assistance to States to purchase abandoned rail lines for transportation and public utility purposes.

Provides that provision for the abandonment of railroad lines shall be conditioned upon the owner of such rail line giving the State in which such line is located the opportunity (no less than one year) to purchase the line at fair market value for use for transportation and public utility purposes prior to its sale to any other person.

Permits the Federal Government to make grants to States under current financial assistance programs to enable them to acquire such railroad lines.