A bill to amend the Comprehensive Employment and Training Act of 1973 to direct the Secretary of Labor to conduct projects for purposes of providing jobs to unemployed persons in the rehabilitation and improvement of railroad rights-of-way, to provide for the purchase by the Federal government of railroad rights-of-way, and for other purposes.

Amends the Comprehensive Employment and Training Act of 1973 to direct the Secretary of Labor to conduct projects to provide jobs for unemployed persons in the rehabilitation and improvement of railroad rights-of-way. Sets forth (1) priorities in the conduct of such projects and such employment and (2) wages and conditions of such employment.

Provides for the purchase by the Federal Government of railroad rights-of-way offered by rail carriers and accepted by the Secretary of Transportation. Sets forth conditions for such payments and for leases with the selling rail carrier providing rail service over such rights-of-way and making lease payments to the Secretary to make payments in lieu of taxes, in specified amounts limited to the first four years of Federal ownership, to local government units which had collected property taxes on such rights-of-way. Prohibits railroads entering into such contracts with the Secretary from making specified investments.