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In page First transcontinental railroad:

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It was far from a given that the railroads operating in the thinly-settled west would make enough money to repay their construction and operation. If the railroad companies failed to sell the land granted them within three years, they were required to sell it at prevailing government price for homesteads: $1.25 per acre ($3.09/ha). If they failed to repay the bonds, all remaining railroad property, including trains and tracks, would revert to the U.S. government.[citation needed] To encourage settlement in the west, Congress (1861–1863) passed the Homestead Acts which granted an applicant 160 acres (65 ha) of land with the requirement that the applicant improve the land. This incentive encouraged thousands of settlers to move west.[5]