The department is hereby authorized to provide financial assistance, within the limits of the funds appropriated for this purpose, for the preservation of operations and maintenance of any railroad within the state as provided for in relevant federal legislation. The department shall provide no public money or property or use or allow the use of public credit to any private person; except that, money or property may be distributed together with money or property received from the United States for any public purpose designated by the United States. The department may also act as the agent in cooperation with any local or regional transportation authority, local governmental units, any group of rail users, or any person, and the federal government in any rail service preservation program.