This law, which went into effect on July 1, 1862, offered federal financing and land subsidies for the building of a transcontinental railroad across the United States.
Congress routinely debated "internal improvements" in the 19th century, including whether or not to support the nation's transportation system. The desire to build a train that would traverse the entire nation was one such improvement.
Congress ordered a number of topographical surveys across the West in the 1850s to find the optimum train route, but private businesses were hesitant to take on the project without Federal aid. The Pacific Railway Act, approved by Congress in 1862, established the 32nd parallel as the first transcontinental route, authorized government bonds to finance the undertaking, and offered substantial grants of land for right-of-way.
The Act guaranteed the government's use of the railroad and telegraph line that was built from the Missouri River to the Pacific Ocean.
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