Did the federal government have little actual involvement in funding the transcontinental railroad?
Four of the five transcontinental railroads were built with assistance from the federal government through land grants.
People Also Ask
In 1862, Congress passed the Pacific Railway Act, which designated the 32nd parallel as the initial transcontinental route, and provided government bonds to fund the project and large grants of lands for rights-of-way.
The two lines of track would meet in the middle (the bill did not designate an exact location) and each company would receive 6,400 acres of land (later doubled to 12,800) and $48,000 in government bonds for every mile of track built.
By one estimate, the project cost roughly $60 million, about $1.2 billion in today's money, though other sources put the amount even higher. While the railroad's construction was a mammoth undertaking, its effects on the country were equally profound.
The Pacific Railway Act was signed into law by President Abraham Lincoln on July 1, 1862. This act provided Federal government support for the building of the first transcontinental railroad, which was completed on May 10, 1869.
Danger Ahead: Building the Transcontinental RailroadThe company suffered bloody attacks on its workers by Native Americans–including members of the Sioux, Arapaho and Cheyenne tribes–who were understandably threatened by the progress of the white man and his “iron horse” across their native lands.
Each company faced unprecedented construction problems—mountains, severe weather, and the hostility of Native Americans. On May 10, 1869, in a ceremony at Promontory, Utah, the last rails were laid and the last spike driven.
In 1893, the year most of the railroads that had received land grants went bankrupt, the Great Northern Railway completed its line from St. Paul to Seattle. Built without any subsidies, the railway was built in segments, with each segment financed by the profits from the previous one.
To encourage development of rail lines westward, the government offered railroad companies massive land grants and bonds. Railroads received millions of acres of public lands and sold that land to generate money for the construction of the railroads.
Builders of the transcontinental railroad faced geographical obstacles across the entire line. But none were quite as formidable as the snowy granite mountain range rising east of Sacramento. Getting through the Sierra Nevada would require fortitude, technology -- and the sacrifice of many workers' lives.