How did the government facilitate the expansion of the railroad?
Hereof, how did the government aid the expansion of the railroad industry?
To remedy the situation, Congress provided assistance to the railroad companies in the form of land grants. The land grant railroads, receiving millions of acres of public land, sold the land to make money, built their railroads, and contributed to a more rapid settlement of the West.
Then, how did the government pay the builders of the railroad?
In 1862, Congress passed the Pacific Railway Act, which authorized the construction of a transcontinental railroad. Four of the five transcontinental railroads were built with assistance from the federal government through land grants.
Railroads made it easy for people to travel long distances. They also helped with trade, as well as the distribution of raw materials needed for cities to grow.