How did Abraham Lincoln affect the construction of the transcontinental railroad? Lincoln signed the Pacific Railroad Act of 1862 into law, which stimulated the construction of the railroad. Lincoln appointed Theodore Judah to survey the land and locate investors for the transcontinental railroad. Lincoln obstructed the passage of the railroad bill because he wanted the government to focus on the Civil War. Lincoln prevented Leland Stanford from running one of the two railroad companies in order to avoid a monopoly.