A bill to amend the Regional Rail Reorganization Act of 1973 and the Department of Transportation Act to provide financial assistance, in connection with rail service assistance programs, to any State which accepts an offer of settlement from a railroad in reorganization with respect to real property tax obligations owned by such railroad to such State.

Amends the Regional Rail Reorganization Act of 1973 and the Department of Transportation Act to authorize the Secretary of Transportation to grant States additional rail service continuation assistance if the State, or a political subdivision of such State, accepts an offer of settlement by railroads in reorganization which owe real property tax obligations to such State or subdivision.

Directs the United States Railway Association to conduct a study to evaluate the fairness and equity of any such settlement and to submit the results of such study to the Congress and the President.