[Objective]Operating subsidies are a crucial guarantee for the healthy development of CSR(city(subur-ban)railways),reflecting their public service nature.The in-volvement of national railways in the construction and operation of CSR can optimize existing assets and leverage transportation advantages.The cooperative development model between na-tional railways and local governments is a distinctive feature of CSR in China.To ensure the sustainable development of CSR,it is necessary to analyze the issue of operating subsidies in the context of this cooperation.[Method]The renovated Shang-hai Jinshan Railway,and the newly-built Chengdu-Dujiangyan Railway are taken as examples to introduce their cooperation mechanisms,identifying the functional roles and responsibili-ties of stakeholders including local governments,CSR compa-nies,and the national railway group.The operating subsidy models and current situations are reviewed,and key issues and primary causes encountered in the subsidy processes for the two lines are summarized.[Result & Conclusion]The Jinshan Railway and Chengdu-Dujiangyan Railway adopt different sub-sidy models—government service purchasing and deficit-orien-ted subsidies,respectively,resulting in differences in subsidy mechanisms and effects.Current challenges in CSR subsidies include revenue and expenditure imbalances under low fare models,inadequacies in dedicated systems and standards for CSR,and unclear asset boundaries in upgraded existing lines.Based on these issues,recommendations are proposed such as enforcing local government payment responsibilities,develo-ping cost accounting standards for CSR,quantifying the posi-tive externalities and overall performance of CSR,and foste-ring TOD(transit-oriented development)industrial chains of CSR through station-city integration.