How did the federal government use land grants in the West in the 1860s? The government gave them to railroad companies for deve
lopment. The government relocated American Indians onto reservations. The government withheld land grants until the Civil War was over. The government gave land to African Americans after the Civil War.
Answer: The government gave them to railroad companies for development.
Explanation:
The United States government used part of the public domain land to aid and support the construction of railroads.
Private banks were hesitant to grant money to railroad companies because they would probably take lots of time to pay it off. That´s why Congress granted land to the railroad companies. Four out of the five transcontinental railroads were created with aid from the federal government. This contributed to a faster settlement of the West.