To amend the National Trails System Act to improve the efficiency and fairness of acquiring railroad rights-of-way for interim use as public trails by applying the procedures applicable to other Federal real estate acquisitions.

H.R. 1261 seeks to change the process for converting inactive railroad corridors into public recreational trails, a practice commonly known as "rail-to-trail" conversion. Under this bill, the development of a new trail could not begin until the private landowners who own the ground beneath the tracks are fully compensated for the use of their property. The legislation would require these payments to follow federal real estate acquisition standards, ensuring that property owners receive financial compensation through a formal appraisal process or a court order before public use of the land commences.