Oregon's lack of dedicated, sustainable funding for rail investments is the number one challenge facing a viable rail system for both passenger and freight in Oregon. Without such funding, Oregon does not have revenue available for the required match for federal funds to improve passenger rail service, nor the substantial revenue to maintain or operate the infrastructure once built. Additionally, funds are needed to improve and expand the freight rail systems that are vital to Oregon businesses and the economy, and to reduce congestion, greenhouse gas emissions and highway maintenance costs.

Therefore, ODOT Director Matt Garrett created the Oregon Rail Funding Task Force to recommend a funding proposal for freight and passenger rail improvements to the Oregon Transportation Commission by December 31, 2011.

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Oregon has received a total of $19.7 million in federal funds from the High-Speed Intercity Passenger Rail program to date.

The Oregon Department of Transportation is conducting the Oregon Passenger Rail Environmental Impacts Statement Project as the next step in improving passenger rail service in the Oregon segment of the federally designated Pacific Northwest Rail Corridor between Eugene and Portland.