Financial support provided by the government to encourage the construction and expansion of railroads. These subsidies often took the form of land grants, loans, or direct payments.
Related terms
Transcontinental Railroad: A railroad line that spanned across the United States, connecting the East Coast with the West Coast. It was largely made possible due to government railroad subsidies.
Land Grants: Tracts of public land given by the government to railroad companies as an incentive for building new rail lines.
Industrialization: The development of industries and manufacturing processes on a large scale. Government railroad subsidies played a significant role in promoting industrialization during this era.