A bill to provide for the improvement of the Nation's railroad system, and for other purposes.

Title I: Railroad Development Act - Directs the Secretary of Transportation: (1) to conduct a study respecting the appropriate method for allocating the cost of the national railroad system among its various users; and (2) to prepare and publish, within 2 years after enactment of this title, national railroad system plan for the development of railroads in the United States, taking into consideration the relationship of each railroad to the rest of the transportation system in the particular area, forecasted technological developments in transportation, and environmental aspects.

Establishes a Railroad Advisory Commission of specified membership to: (1) formulate recommendations concerning the long-range needs of railroad transportation; and (2) facilitate consideration of other modes of transportation.

Provides that, in order to promote the effective location of railroad development projects and the development of an adequate national railroad system plan, the Secretary may make grants of funds to railroads and public agencies for railroad system planning and for railroad master planning.

States that such grants: (1) may not exceed two-thirds of the cost incurred in accomplishment of the project; (2) may not be made for projects on a single railroad in excess of 5 percent of available funds; and (3) may not exceed $75,000,000 in total nor $15,000,000 in one year.

Authorizes the Secretary to make approximately 10 billion dollars available for grants for railroad development from fiscal year 1976 through fiscal year 1981. Provides for the apportionment of two-thirds of such funds according to the number of track miles involved in the project, and one-third at the discretion of the Secretary.

Provides that all railroad development projects shall be subject to the approval of the Secretary upon a determination that the project meets specified criteria, including compliance with applicable air and water quality standards.

States the criteria for determining what costs of a project are eligible for Federal grants and specifies that public parking facilities for passenger cars and buildings (except those directly related to transportation operations of the railroad) are not eligible for such grants.

Provides that labor employed by a sponsor of a project shall be subject to the existing terms of labor agreements then in effect or subject to the Davis-Bacon Act.

Authorizes the Secretary to make loans (not to exceed $1,000,000,000 in aggregate) to railroads from the Railroad Trust Fund for the rehabilitation, modernization, or acquisition of railroad rolling stock.

Requires the Secretary to report to the Congress annually concerning his actions pursuant to this title.

Provides criminal penalties for false statements made in connection with securing project cost grants under this title.

Requires standardized procedures for recordkeeping by and provides for audit and examination of grant and loan recipients.

Title II: Railroad Revenue Act - Imposes a tax of 5 percent of the amount paid for rail transportation to be paid by the person making the payment subject to tax.

Establishes in the Treasury of the United States the Railroad Trust Fund to consist of the tax dollars collected for transportation of property by rail, such amounts to be available for expenditures made pursuant to title I of this Act.

Directs the Secretary to make available to the Congress by March 1, 1978 a study on which possible revisions of the taxes imposed by this title may be based.