The United States Railroad Revitalization and Regulatory Act of 1976, funded the reorganized bankrupt Northeast and Midwest railroads that formed Conrail in 1975. The act also authorized financial subsidies for upgrading rail facilities.
It was soon succeeded by the Staggers Act of 1980 (passed under Democrat Jimmy Carter) which deregulated rail, in contrast with the earlier 1970 tendencies (under Republican and nominally pro-market Gerald Ford) towards nationalization.