Which of the following did the Pacific Railway Act authorize?

• A. Created the Interstate Commerce Commission
• B. Provided federal subsidies in land and loans for the construction of a transcontinental railroad
• C. Abolished the slave trade in the District of Columbia
• D. Established the federal land grant colleges

Answer: (B)

The main idea here is how the federal government spurred building a transcontinental railroad by giving direct financial support and land to the builders. The Pacific Railway Act authorized subsidies in the form of land grants and loans to the railroad companies—most notably the Union Pacific and Central Pacific—so they could finance the dramatic task of laying tracks from coast to coast. The land grants let the companies receive vast parcels along the route, which they could sell to raise capital, while the government also provided loans to fund construction. This combination of land and loan support accelerated the project, promoting faster movement of people and goods and helping knit the country together after the Civil War.

Other options refer to different laws: the Interstate Commerce Commission was created later to regulate railroads, not fund them; the abolition of the slave trade in the District of Columbia was addressed by other measures; and the Morrill Act established land-grant colleges, not rail subsidies.