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Cincinnati’s Southern Railway Trust Board approved a $72.1 million distribution to the city for fiscal year 2028. The amount includes a $10 million one-time increase above the trust’s regular distribution under its 3.5% policy. The funds are restricted to existing city-owned infrastructure, and city officials said the additional money could support more street paving and preventive maintenance.
The board of trustees of the Cincinnati Southern Railway Trust (CSRT) recently approved a $72.1 million distribution for the city in fiscal year 2028.
This will support existing city-owned infrastructure, with an additional $10 million recommendation, designated as a one-time boost.
The board approved the distribution during its quarterly meeting Tuesday, Sept. 15 for fiscal year 2028 which begins on July 1, 2027.
The distribution is tied to proceeds from Cincinnati’s sale of its city-owned railway to Norfolk Southern.
Cincinnati voters approved the approximately $1.6 billion sale in 2023. The transaction replaced the city’s decades-long lease arrangement with Norfolk Southern.
The sale proceeds were invested through the trust, allowing the city to receive annual distributions from investment earnings while retaining the fund’s principal.
The trust’s balance has grown to more than $1.9 billion.
Who decides how the money is spent?
The board may have approved the $72.1 million distribution but this does not determine how the city ultimately spends the money.
City administration officials develop infrastructure spending proposals, while Cincinnati City Council approves the city’s budget and appropriations.
For example, the city’s administration has used the Cincy on Track program to identify projects eligible for railway-trust funding. The city’s FY2026 capital budget divided the $56 million distribution among categories including streets and bridges, recreation, parks and public services.
The Cincinnati Council has the final legislative role in approving the city budget and appropriations through which the city spends the money.
Meanwhile, the trust board has indicated it would like the additional $10 million to support street rehabilitation.
Railway trust payments have increased
Before the railway sale, the City of Cincinnati received about $26 million annually through lease payments.
The city received $56 million from the trust in fiscal year 2026 and $58 million in fiscal year 2027.
The approved $72.1 million distribution for fiscal year 2028 represents a significant increase over both previous distributions.
|
Revenue source |
Annual amount |
|---|---|
|
Former railway lease |
About $26 million |
|
FY2026 trust distribution |
$56 million |
|
FY2027 trust distribution |
$58 million |
|
FY2028 trust distribution |
$72.1 million |
Under the trust board’s distribution policy, the regular FY2028 distribution would have been about $62.1 million. The board approved an additional $10 million as a one-time increase after investment managers reported that the fund was performing above expectations.
The additional funding also followed discussions with Cincinnati officials about infrastructure needs.
Cincinnati currently budgets about $25 million annually for its core street rehabilitation program, according to the city’s Department of Transportation & Engineering (DOTE).
DOTE manages about 2,935 lane miles of city streets, covering 52 neighborhoods.
Check the street rehabilitation list here.
Extra funding could increase street paving
Cincinnati officials presented street paving as one potential use for the additional $10 million.
According to a report by WVXU, Department of Transportation and Engineering Director Greg Long told the trust board that changes to the city’s bidding process have reduced the cost of paving projects.
Long said the additional funding could allow Cincinnati to pave another 21 lane miles and conduct preventive maintenance on another 25 lane miles.
He also said the additional funding could help the city exceed 100 lane miles of paving.
The trust board expressed interest in directing the additional $10 million toward street rehabilitation, although the board does not determine the city’s final spending allocations.
Cincinnati City Council will ultimately decide how the city’s infrastructure funding is allocated through the city’s budget process.
State law limits how the money can be spent
Revenue from the railway sale is restricted to maintaining existing city-owned infrastructure.
Eligible uses include roads, parks, recreation facilities and public safety facilities such as police and fire stations.
The trust’s structure allows Cincinnati to use investment earnings for infrastructure while preserving the principal generated from the railway sale.
The growing fund has allowed annual distributions to increase while maintaining the long-term investment.
The FY2028 distribution will become available after the next fiscal year begins on July 1, 2027.
FAQs
Why does Cincinnati receive money from the railway trust?
The trust manages proceeds from the city’s 2023 sale of the Cincinnati Southern Railway. Investment earnings are distributed to Cincinnati for eligible infrastructure expenses.
What can Cincinnati use the railway sale money for?
State law restricts the money to existing city-owned infrastructure. Potential uses include roads, parks, recreation facilities, and police and fire facilities.
Will the entire $72.1 million go toward street paving?
Not necessarily. City officials discussed using the additional $10 million for street rehabilitation, but Cincinnati City Council determines the city’s final infrastructure allocations.
