State Rail Freight Assistance Act

State Rail Freight Assistance Act - Amends the Department of Transportation Act and the Regional Rail Reorganization Act to revise the time periods during which Federal financial assistance shall be available for rail service assistance programs under such Acts.

Stipulates that any in-kind benefits for rail service assistance programs which a State may provide for any period in excess of the State's share of project costs for that period shall be applied toward that State's share in any subsequent period. Stipulates that, whenever the costs of an approved project exceed the amount of rail freight service assistance to which a State is entitled, the Secretary of Transportation is authorized to provide assistance in any subsequent period to cover the costs of such project.

Makes projects eligible for rail service assistance under such Acts if the railroad line involved is subject to an abandonment proceeding before the Interstate Commerce Commission or is classified as "potentially subject to abandonment" under the Interstate Commerce Act.

Prohibits the Secretary from withholding approval of a State rail freight program or project solely on the grounds that the State initiated the program or project without the Secretary's prior approval.

Stipulates that of the funds authorized to be appropriated for rail service assistance programs under the Department of Transportation Act, no more than $10,000,000 shall be made available for planning grants for each of the fiscal years 1976 through 1980.