The Federal Railroad Administration provides capital funding through the High Speed Intercity Passenger Rail (HSIPR) Grant Program and the American Reinvestment and Recovery Act (ARRA) to support many of the Downeaster’s infrastructure improvement programs including $38.5 million for the Downeaster Expansion Project, $20.8 million for track infrastructure improvements on the MBTA Line and $600,000 to complete the Downeaster Service Development Plan.

The Maine Department of Transportation (MaineDOT) allocates funds generated through the dedication of car rental sales tax into the State Transportation Aviation and Rail (STAR) Account to support the balance of Downeaster operating costs not covered by fares or Congestion Mitigation Air Quality (CMAQ) and also provides funds to match federal grants for capital improvements.

The Federal Transit Administration (FTA) administers the Congestion Mitigation Air Quality (CMAQ) funds allocated by the MaineDOT to support approximately 80% of Downeaster operating cost needs.