Asheville Passenger Rail Project Gains Ground Amid Funding Hurdles – What’s Next for 2026

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A historic revival of passenger rail service between Asheville and Salisbury is edging closer, with local leaders and transportation advocates hopeful that the project could come to life as soon as 2035. After more than 50 years since the last passenger train departed from Asheville’s Biltmore Station, there is growing momentum to reconnect Western North Carolina to the state’s rail network. However, as funding and political challenges loom, the success of this project depends on the support of local governments and federal investment.

On March 18, 2026, key stakeholders from across the region will meet in Morganton for the Railroads and Regional Economic Development Conference, where they will discuss the potential benefits of reviving passenger service to Asheville and the broader region. The proposed route would run from Asheville to Salisbury, significantly improving transportation for both local commuters and tourists.

The North Carolina Department of Transportation (NCDOT) estimates the cost of restoring passenger rail service at $650 million to $665 million. This price tag includes the need to upgrade tracks, modernize stations, and acquire new rolling stock. If the project proceeds as planned, it will provide three daily round trips and could attract 100,000 passengers annually by 2045.

Historic Rail Connections and New Opportunities for Asheville

In the late 19th and early 20th centuries, Asheville was a key hub for north-south and east-west rail travel. Trains connected the city to Charleston, Cincinnati, and Murphy, making rail travel a vital part of the region’s economy and identity. However, with the rise of highways and the construction of Interstate 26 and Interstate 40 in the 1960s, automobile traffic quickly surpassed rail travel, and ridership plummeted. The last passenger train departed in 1975, marking the end of an era.

Fast forward to today, and advocates say Western North Carolina is on the verge of a turning point. As the region grapples with congestion on mountain highways, rail proponents believe the time has come to bring back passenger service and offer a sustainable transportation alternative. Mayor Esther Manheimer of Asheville believes that rail service will help reduce highway congestion, provide alternative transportation for commuters, and enhance access to jobs, education, and medical care for local residents.

“We’ve heard from a lot of people who need alternatives to long car commutes,” says Mayor Manheimer, who will participate in the March 18 conference. The Asheville-to-Salisbury rail corridor would provide a critical link between Western North Carolina and North Carolina’s larger cities like Charlotte and Raleigh, integrating the region into the state’s existing Amtrak network.

Feasibility Studies and Projected Benefits

Recent studies have confirmed the feasibility of the project. According to the 2023 Western North Carolina Passenger Rail Feasibility Study, restoring the rail line would offer significant economic benefits to the region. The study estimates the project would:

• Create 5,280 construction job-years and generate $1.05 billion in total economic output during the build-out phase.
• Support 305 permanent jobs, producing $19.9 million in annual wages.
• Generate nearly $34 million in state and local tax revenue from both construction and ongoing operations.

This economic impact is particularly promising in a region that has struggled with job availability and economic mobility in some areas. The rail service would also enhance tourism by providing easier access to the area’s national parks, hiking trails, and outdoor activities.

“We see a lot of potential in creating new tourism opportunities,” says Ray Rapp, co-chair of the WNC Rail Committee. “We want to revitalize the region, and this rail project will play a key role in that.”

Funding Challenges: Securing Local and Federal Support

The biggest challenge facing the revival of passenger service to Asheville is securing the necessary funding. While federal discretionary grants could cover up to 80% of the cost, local and state governments would need to contribute the remaining 20%, which amounts to approximately $130 million. This significant funding gap remains a central hurdle for the project.

Much of the federal funding would come from the 2021 Bipartisan Infrastructure Law, which allocated $61 billion nationwide for rail investments. The Federal Railroad Administration’s Corridor Identification and Development Program has already accepted the Asheville-to-Salisbury corridor for potential funding, putting the project in line for federal support.

However, securing these funds is not a certainty. While discussions with federal representatives, including U.S. Senators Thom Tillis and Ted Budd, have been positive, local governments and planning organizations are still exploring how to come up with their share of the funding.

Local Governments’ Role and Regional Support

The City of Asheville has expressed its support for the rail project, but Mayor Manheimer emphasized that the city’s immediate priorities include recovering from the recent impacts of Tropical Storm Helene and passing a balanced budget. While Asheville will play a role in regional coordination, the city is relying on state and federal investment to move the project forward.

In addition to Asheville, local governments along the proposed route — including Morganton, Marion, and Salisbury — have all expressed strong support for the project. In 2018, these communities even passed resolutions supporting a pilot Amtrak bus service, which ultimately helped gauge public interest in passenger rail service. The project has significant backing from both urban and rural communities in Western North Carolina, all eager to see the return of rail service to the region.

Looking Ahead: A Bright Future for Rail in Asheville

The effort to restore passenger rail service to Asheville is undoubtedly ambitious, but there is growing optimism that the region is on the cusp of a major transportation breakthrough. With support from both the federal government and local municipalities, the rail project could transform the region’s transportation infrastructure by 2035.

“The momentum is there, and we have the groundwork laid,” says Ray Rapp. “Now, we need to keep pushing forward and work together to solve the funding challenges.”

As the conversation about the Asheville rail revival continues to gain momentum, it remains clear that regional collaboration and strong federal investment will be crucial in bringing the historic rail service back to life in Western North Carolina.